UPDATE: Oppenheimer Raises PT to $50 on Domino's Pizza on Catalysts
Oppenheimer reiterated its Outperform rating on Domino's Pizza (NYSE: DPZ) and increased its price target from $44 to $50.
Oppenheimer noted, "DPZ represents a potential bright spot in '13—a year most restaurants must absorb challenging top and bottom-line industry headwinds. DPZ's model possesses rare drivers that could provide an unusual acceleration in fundamentals and EPS upside: 1) domestic SSS are equipped with easing comparisons, impactful product innovation and a secular technology tailwind; 2) International profits could re-accelerate as FX headwinds disappear, unit growth accelerates and G&A leverages; 3) rising food costs are immaterial to EPS given the 3% co-owned model; and 4) robust FCF could drive higher-than-expected share repurchases."
Domino's Pizza closed at $42.81 on Wednesday.
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