DMP - Citi rates the stock as Sell
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Australia's pizza market is likely to consolidate further if Retail Food Group ((RFG)) closes stores. Per store, Retail Food Group generates one quarter the profit that Domino's Pizza generates.
Citi believes there could be upside risk for Domino's Pizza, estimating for each 1% movement in Australian same-store sales growth its earnings are affected by 1%.
The share price has likely fallen on concerns about the second half, in Citi's view. The broker is below guidance, estimating 16% growth in net profit for the full year. Sell rating and $43.60 target maintained.
Sector: Consumer Services.
Target price is $43.60.Current Price is $43.14. Difference: $0.46 - (brackets indicate current price is over target). If DMP meets the Citi target it will return approximately 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).
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