UBS resumed coverage of Domino’s Pizza with a Neutral rating and $150 target. The broker assesses the pandemic has accelerated the delivery channel and this has become a successful route to market for quick service restaurants.
Growth in the store network is a driver of same-store sales growth as proximity amplifies the carry-out and delivery variables. The broker notes the performance in the share price has been significant and the valuation is already elevated yet considers this justified.
Sector: Consumer Services.
Target price is $150.00.Current Price is $143.19. Difference: $6.81 – (brackets indicate current price is over target). If DMP meets the UBS target it will return approximately 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
