In a report released today, Sam Teeger from Citi upgraded Domino’s Pizza Enterprises Limited to a Hold, with a price target of A$19.85.
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Sam Teeger has given his Hold rating due to a combination of factors impacting Domino’s Pizza Enterprises Limited. The company has shown some positive developments, such as improved franchisee profitability from the shift to an Everyday Low Price (EDLP) strategy, which is enhancing margins. Additionally, the recent debt refinancing has de-risked the balance sheet, providing more favorable covenants for the next two years.
However, challenges remain, particularly in the key markets of France and Japan, where sales continue to decline. There is also uncertainty about the potential disruption from cost-saving initiatives, which could affect operations and food quality. Despite these concerns, the reduced risk of an equity raise and takeover speculation contribute to the Hold rating, with a target price set at $19.85.
In another report released on November 5, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a A$17.50 price target.
Based on the recent corporate insider activity of 7 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of DPZUF in relation to earlier this year.