Domino’s Looks Mouthwatering (DPZ)

Analysts at Citigroup have upgraded Domino’s Pizza Inc. (NYSE: DPZ) with a price target of $14.00. Domino’s has seen a solid acceleration in sales during January ytd, in stark contrast to peers like Burger King (NYSE: BKC).

Domino’s has come out with a strong promo of its revamped pizza and the promo is expected to bring benefits to the company’s earnings. The stock is also currently attractively priced, trading at only 10x fwd EPS. This compares favorably with the average of its peers – 13x fwd EPS. 4Q09 is expected to be soft, but this is already factored at the stock’s current levels.