In a report released yesterday, John Ivankoe from J.P. Morgan maintained a Hold rating on Domino’s Pizza, with a price target of $460.00.
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John Ivankoe has given his Hold rating due to a combination of factors impacting Domino’s Pizza’s future performance. The company’s recent third-quarter results showed strong domestic sales, boosted by initiatives like the partnership with DoorDash and promotional offers. However, these initiatives represent a peak period, making it challenging to replicate such success in the upcoming year.
Despite the solid performance, Ivankoe notes that the growth in new store openings, particularly in the U.S., is crucial for long-term success. While the current valuation of Domino’s is not considered expensive, Ivankoe prefers other opportunities in the global quick-service restaurant sector, such as QSR and YUM. The financial outlook, including a forecasted free cash flow yield and price-to-earnings multiple, supports a neutral stance with a price target of $460 by December 2026.
In another report released yesterday, Wells Fargo also maintained a Hold rating on the stock with a $450.00 price target.
Based on the recent corporate insider activity of 73 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of DPZ in relation to earlier this year.