In a report released today, James Wheatcroft from Jefferies maintained a Buy rating on Domino’s Pizza, with a price target of p380.00.
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James Wheatcroft has given his Buy rating due to a combination of factors including Domino’s Pizza’s ability to maintain flat orders despite a challenging market environment. The company’s market share in the UK takeaway and pizza takeaway sectors has shown growth, indicating a competitive edge over rivals such as Just Eat, which experienced a decline in orders. Additionally, the loyalty trial has exceeded expectations, suggesting potential for increased customer retention and future revenue growth.
Despite a reduction in EBITDA guidance and a slowdown in franchisee openings, Domino’s trades at a valuation significantly below its pre-COVID average, presenting a potentially attractive investment opportunity. The company’s resilience in maintaining system sales and revenue growth, alongside improvements in like-for-like sales towards the end of July, further supports the positive outlook. These factors collectively underpin Wheatcroft’s confidence in the stock’s potential for future appreciation.
According to TipRanks, Wheatcroft is a 5-star analyst with an average return of 11.6% and a 54.42% success rate. Wheatcroft covers the Consumer Cyclical sector, focusing on stocks such as Inchcape, Flutter Entertainment PLC, and Playtech.