Melinda Baxter, an analyst from Morgan Stanley, maintained the Buy rating on Domino’s Pizza Enterprises Limited (DPZUF – Research Report). The associated price target was lowered to A$52.00.
Melinda Baxter’s rating is based on a thorough examination of Domino’s Pizza Enterprises Limited’s financial outlook and market position. Despite revising store growth targets downward due to underperformance in year-to-date store additions and challenges in key markets such as Japan and France, Baxter remains optimistic about the company’s prospects. The adjustment reflects a more conservative growth rate in line with current trends, yet the underlying business fundamentals are considered strong enough to warrant a Buy rating. She acknowledges the need to recalibrate expectations but sees potential in Domino’s resilience and operational capabilities.
Moreover, Baxter has factored in the revised earnings before interest and taxes (EBIT) estimates, which have been lowered by an average of 8.5% for the fiscal years 2024-2026. Despite this reduction and a decrease in the price target from A$58.85 to A$52 per share, the stock’s current price and the recalibrated forecasts suggest that there is still upside potential. Baxter’s confidence in Domino’s ability to navigate through the current challenges and her belief in the company’s long-term growth trajectory underpin her decision to maintain a Buy rating on the stock.
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Domino’s Pizza Enterprises Limited (DPZUF) Company Description:
Domino’s Pizza Enterprises Ltd. engages in the management of retail food outlets and franchise services. It operates through the following geographical segments: Australia/New Zealand, Europe, and Japan. The company was founded on December 27, 1983 and is headquartered in Brisbane, Australia.
