UPDATE: Miller Tabak Downgrades Domino's Pizza to Hold on Valuation

In a report published Wednesday, Miller Tabak analyst Stephen Anderson downgraded the rating on Domino's Pizza DPZ from Buy to Hold, but reiterated the $59.00 price target. In the report, Anderson noted, “DPZ has posted above-consensus EPS in five of the six past quarters, and we argue DPZ's focus on new products such as pan pizza and embrace of new technologies have helped the company deliver not only double-digit earnings growth, but also market share gains against entrenched rivals. We contend above-peer comp growth both in the U.S. and overseas, reinvigorated unit growth in the U.S. (helped potentially by a new unit prototype), a more benign food cost environment, and incremental share buybacks will provide support EPS growth of at least 20% in the next two years. However, in light of the 35% year-to-date rally and the 109% gain from the June 2012 low, and as we model more difficult sales comparisons in the U.S. beginning in late 2013, we now think DPZ's current share price reflects these positives.” Domino's Pizza closed on Tuesday at $59.00.