At a recent Investor Day for Domino's Pizza, Inc DPZ, Barclays noted that the company said "fundamentally, not a thing has changed" and "our steady strategy continue to deliver." While Barclays does back the fact that stock strength has been impressive since 2009, there are still questions whether or not this will be sustained.
Barclays, in its Friday morning summary, mentioned that Domino's Pizza has doubled the S&P return every year since that initial strength in 2009. The model is a 100 percent franchised system, which Barclays said insulates the company with high-margin annuity stream from royalty income and drives fundamental strength.
Barclays believes that these three topics of interest will determine if Domino's can maintain its outperformance:
Increasing U.S. competition
- Large market share opportunity internationally and in US
- Balance sheet efficiency with proceeds returned to shareholders
Given the already high valuation, Barclays maintained an Equal-Weight rating with a $117 price target.
Shares closed Friday at $104.16, down 2.7 percent on the day.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.