Bank of America Securities analyst Sara Senatore has reiterated their bullish stance on DPZ stock, giving a Buy rating yesterday.
Sara Senatore’s rating is based on Domino’s Pizza’s strategic initiatives and market positioning. Despite some challenges in the first quarter, such as adverse weather conditions affecting sales, the company’s performance aligned with its internal expectations. This alignment indicates potential for growth, particularly with the introduction of new products like stuffed crust pizza and the strategic partnership with DoorDash, which is expected to enhance market presence and sales.
Furthermore, Domino’s is anticipated to benefit from improved supply chain margins and productivity, supporting its earnings growth targets. The company’s ability to leverage its scale to offer competitive value across various ordering platforms also contributes to its positive outlook. With a price objective set at $549, reflecting market multiple expansion, Sara Senatore believes Domino’s Pizza is well-positioned for future growth, justifying the Buy rating.
Senatore covers the Consumer Cyclical sector, focusing on stocks such as Yum! Brands, Chipotle, and Domino’s Pizza. According to TipRanks, Senatore has an average return of 3.4% and a 51.32% success rate on recommended stocks.
In another report released yesterday, Stifel Nicolaus also maintained a Buy rating on the stock with a $510.00 price target.