As of April 19, 2016, Domino’s Pizza (DPZ) was trading at $137.5. The share price might have priced in the estimates that we discussed earlier in this series. In this part, we’ll look at analysts’ recommendations and estimated price targets for Domino’s Pizza over the next 12 months.
Since the announcement of its 4Q15 results, Domino’s Pizza’s share price is rising. Since its 4Q15 results were better than expected, the company’s growth prospectus for 2016 increased investors’ confidence. Since the announcement of its 4Q15 results, the share price increased by 16.8%. Analysts think that Domino’s Pizza’s current share price, which forms 0.46% of the holdings of the SPDR S&P MIDCAP 400 ETF (MDY), is overpriced. It’s expected to decline to by 1.4% to $135.6 over next 12 months. On the higher side, John D. Staszak of Argus Research expects the share prices to touch $155. On the lower side, Alexander Slagle of Jefferies expects the share prices to touch $125.
According to a Bloomberg survey of 17 analysts, 29.4% recommended a “buy,” 64.7% recommended a “hold,” and 5.9% recommended a “sell.” As analysts raise their target prices for the next 12 months, the price of the stock could also increase and vice versa.
A share price that’s lower than the target price doesn’t mean you should automatically buy a stock. Before investing, you should carefully analyze the various metrics we covered in this series.