Is Domino's Pizza Still Hot? Demand Weakness Concerns Are 'Overblown,' Analyst Says - Domino's Pizza (NYSE:DPZ)

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Domino’s Pizza Inc.’s DPZ demand weakness concerns seem “overblown,” according to UBS analyst Dennis Geiger.

The Analyst: Geiger upgraded the rating for Domino’s Pizza from Neutral to Buy, while reducing the price target from $430 to $385.

The Thesis: Current catalysts could accelerate U.S. sales, and Domino’s has a compelling long-term growth profile. Proprietary checks suggest that there is strong demand, Geiger said.

Check Out Other Analyst Stock Ratings.

“We see near-term catalysts to accelerate DPZ sales from: expected upcoming price increases on select promos, efforts to improve driver staffing shortages, and potential 3P delivery partnerships,” Geiger wrote. “Additionally, we believe DPZ should exhibit above avg resiliency in a pressured spending environment given leading value positioning and a very affordable dinner option for families.”

The price target has been lowered due to reduced earnings estimates for 2022 and 2023 to $12.47 per share and $14.67 per share, respectively, to reflect macro challenges and forex effects, Geiger explained.

See Also: Domino’s Analyst Says There’s No ‘Pizza Fatigue,’ Turns Bullish

DPZ Price Action: Shares of Domino’s Pizza had risen by 4.21% to $329.44 at the time of publication Tuesday.

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Image and article originally from www.benzinga.com. Read the original article here.