UPDATE: Citigroup Reiterates Neutral Rating, Raises PT on Domino's Pizza

In a report published Wednesday, Citigroup reiterated its Neutral rating on Domino's Pizza DPZ, and raised its price target from $37.00 to $45.00. Citigroup noted, “We rate Domino's Neutral. In our view, Domino's is a dominant quick service restaurant (QSR) operator and should benefit in the long run from its ability for strong product innovation, efficient marketing, and its highly franchised model and international growth, both of which generate solid free cash flow. We forecast strong long-term operating performance. Over the next few years, we forecast high single EPS growth, low single digit SSS, ROIC of 33% and a lower average net debt/capitalization of 581% vs. 604% over the last three years. Additionally, the company has a FCF yield of 10%. While the long-term growth prospects are solid, we believe shares are mostly fairly valued. Therefore, we rate DPZ Neutral.” Domino's Pizza closed on Tuesday at $41.16.