Analyst Peter Saleh from BTIG maintained a Buy rating on Domino’s Pizza (DPZ – Research Report) and increased the price target to $530.00 from $500.00.
Peter Saleh’s rating is based on several key factors that suggest a positive outlook for Domino’s Pizza. The company’s partnership with DoorDash is anticipated to drive sequential improvements in domestic same-store sales, contributing to a stronger sales trend in the latter half of the year. Additionally, the Stuffed Crust offering is expected to provide incremental benefits, enhancing the company’s competitive position in the market.
Despite a slight miss in first-quarter domestic comparable sales, the international performance was robust, particularly in markets like Canada and India, which exceeded expectations. Furthermore, Domino’s is on track with its domestic development plans, aiming for over 175 new units, and management does not foresee any immediate risks from tariffs affecting construction costs. The refinancing of $1.15 billion in debt is also expected to proceed smoothly, albeit at a slightly higher interest rate, which has been factored into the estimates. These elements collectively support the Buy rating, reflecting confidence in Domino’s ability to maintain market share and achieve its financial targets.
In another report released today, Stifel Nicolaus also maintained a Buy rating on the stock with a $510.00 price target.