Deutsche Bank Initiates Coverage of Domino’s Pizza with a ‘Buy’


Dec. 19 2017, Updated 4:16 p.m. ET

Analysts’ ratings

On December 18, 2017, Deutsche Bank initiated coverage of Domino’s Pizza (DPZ) with a “buy” rating and a 12-month target price of $210, representing a return potential of 12.9%.

Brett Levy of Deutsche Bank expects Domino’s strong performance to continue due to the company’s ability to drive its sales. Levy added that the company’s strong store and distribution operations make it a “buy” in the restaurant industry.

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Of the 21 analysts that follow Domino’s, 47.6% recommend “buys” on the stock, and the remaining 52.4% recommend “holds.” No analysts recommend the “sell” option. On November 28, 2017, Instinet upgraded the stock from a “neutral” to a “buy.” Instinet raised its rating upon citing Domino’s opportunity to expand into foreign markets. Earlier, on November 2, 2017, Maxim upgraded the stock to a “buy” from a “hold.”

On average, analysts expect Domino’s stock price to reach $212.76 in the next 12 months, which represents a return potential of 14.4%. Domino’s stock has moved in tandem with analysts’ ratings. When analysts raise the target price on a stock, the stock’s price tends to rise, and vice versa. Currently, Domino’s is trading below analysts’ target price. However, this doesn’t mean it’s an automatic “buy.”

Peer comparisons

Of the eight analysts that follow Papa John’s (PZZA), 37.5% recommend “buys,” and 62.5% recommend “holds” on the stock. In the next 12 months, analysts expect the company’s stock price to reach $71.13, which represents a return potential of 23.3%.

Of the 25 analysts that follow Yum! Brands (YUM), 48.0% recommend “buys,” and the remaining 52.0% recommend “holds” on the stock. No analysts recommend a “sell” on the stock. In the next 12 months, analysts expect YUM’s stock price to reach $82.65, which represents a fall of 0.6% from its current price.

Next, we’ll take a look at Domino’s stock performance.


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