Domino’s Pizza (DPZ – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst yesterday. Analyst Brian Harbour from Morgan Stanley maintained a Buy rating on the stock and has a $510.00 price target.
Brian Harbour has given his Buy rating due to a combination of factors that reflect a cautiously optimistic outlook for Domino’s Pizza. Despite the mixed results in key performance indicators for the first quarter, the company has maintained its guidance for a 3% increase in U.S. same-store sales for the year. This consistency in guidance, even amidst a challenging environment, suggests confidence in their strategic direction and operational execution.
Moreover, Domino’s international sales have shown strength, with a 3.8% increase in same-store sales, although the company has set a more conservative guidance of 1%-2% moving forward. The company’s ability to navigate economic and political uncertainties, along with a strong performance in digital sales channels like DoorDash, supports the positive outlook. Additionally, the financial performance was bolstered by a notable gain from DPC Dash, leading to an increase in earnings per share estimates. These factors collectively contribute to the Buy rating, as they indicate potential for growth and resilience in the current market climate.
In another report released today, Bank of America Securities also reiterated a Buy rating on the stock with a $549.00 price target.
Based on the recent corporate insider activity of 88 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of DPZ in relation to earlier this year.