Domino’s Pizza downgraded to Neutral from Outperform at Baird

Baird analyst David Tarantino downgraded Domino’s Pizza to Neutral from Outperform with a price target of $320, down from $400. The analyst came away from the company’s Q4 report with lower conviction in its fundamental outlook. When factoring in reduced estimates, management’s expectations for slower sales growth in upcoming years, and the limited visibility to improved U.S. comps performance, it is hard to argue for a significant rebound in the shares on a near-term basis, the analyst tells investors in a research note. The firm would look to return to a more constructive near-term stance on signs that Domino’s initiatives are translating to sustainable improvements in sales.