After looking at various analysts’ estimates for Domino’s Pizza (DPZ), Papa John’s (PZZA), and Yum! Brands (YUM) earlier in this series, we’ll look at analysts’ recommendations and their target prices in this part.
Papa John’s has been the most favored stock among analysts. Of the five analysts that follow Papa John’s, 60% recommend a “buy” and 40% recommend a “hold.” None of the analysts recommend a “sell.” On average, analysts expect the company’s stock price to reach $90.20 in the next 12 months, which represents a rise of 25.8% since the announcement of its 2Q17 earnings.
Of the 16 analysts that follow Domino’s, 37.5% recommend a “buy” and 62.5% recommend a “hold.” Analysts expect Domino’s stock price to touch $210.93 in the next 12 months, which represents a return potential of 15.1%.
Of the 24 analysts that follow Yum! Brands, 45.8% recommend a “buy” and 54.2% recommend a “hold.” None of the analysts recommend a “sell.” Analysts expect Yum! Brands’ stock price to reach $79.11 in the next 12 months, which represents a return potential of 3.5%.
All three companies’ current stock prices are lower than analysts’ target price. However, it doesn’t mean an automatic “buy.” Investors should consider analysts’ estimates, discussed earlier in this series, before making any investment decisions.
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