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What Analysts Recommend for Domino’s ahead of Its 4Q17 Earnings

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Feb. 27 2018, Updated 10:30 a.m. ET

Target price

On February 22, 2018, Domino’s Pizza (DPZ) was trading at $227.00. On the same day, analysts expected the company’s stock price to reach $235.60 in the next 12 months, which represents a return potential of 3.8%.

The implementation of technological advancements, aggressive expansion of its business, and investments in technology innovations, supply chain capacity, and capabilities appear to have encouraged analysts to raise their target price. 

After the announcement of its 4Q17 earnings, Oppenheimer raised its target price from $230.00 to $240.00, and Bernstein increased its target price from $200.00 to $230.00. Credit Suisse raised its target price from $235.00 to $245.00. However, Mizuho and Barclays have lowered their target prices.

The target price and return potential of Domino’s peers are as follows:

  • Papa John’s (PZZA): target price of $69.00 with return potential of 22.4%
  • Yum! Brands (YUM): target price of $85.70 with return potential of 9.4%
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Analysts’ ratings

Of the 22 analysts that follow Domino’s Pizza, 59.1% recommend a “buy,” and the remaining 40.9% recommend a “hold.” None of the analysts recommend a “sell” option.

Currently, Domino’s is trading below its 12-month target price. However, this doesn’t mean an automatic “buy.” Investors are advised to study various analysts’ estimates before making any investment decisions.

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