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

In a report published Monday, Citigroup reiterated its Neutral rating on Domino's Pizza DPZ, and raised its price target from $45.00 to $47.00. Citigroup noted, “We believe DPZ has seen a solid US SSS in 4Q due in part to the new pan pizza. Based on our channel checks, we expect at least 3-4% US franchisee SSS growth in 4Q, similar or slightly better than the 3Q growth of 3.6%. We tracked around 3% SSS in December. We believe this is likely to be viewed favorably by investors given it's an acceleration on a 2-year basis as well, as the co faced tougher prior year sequential comparisons in 4Q vs. 3Q (2.9% in 3Q11 and 6.6% in 4Q11). While the pan pizza is not as big of an innovation as the revamped new core pizza was at the end of '09, and it's still very early, we believe it could add an incremental low to mid single digit SSS growth in the initial trail with a low single digit incremental SSS contribution beyond that.” Domino's Pizza closed on Friday at $45.16.