Market Overview

After Sell-Off, Longbow Has An Appetite For Domino's Pizza Stock

After Sell-Off, Longbow Has An Appetite For Domino's Pizza Stock

After a recent sell-off in shares, Longbow Research is getting back on board with Domino’s Pizza, Inc. (NYSE: DPZ), upgrading shares to a Buy rating with a $229 price target.

Shares of Domino's fell nearly 15 percent since Longbow downgraded the stock last month. At the time, the downgrade was driven by concerns that investors were too bullish heading into earnings.

Domino's ended up crushing second-quarter earnings estimates this week, where the company saw comps at co-owned stores rise 11.2 percent.

“As stated in our downgrade piece in June, we remained very positive at the time on the short and long-term fundamentals for Domino’s and recommended investors remain opportunistic in the event of a material pullback in the shares,” said Longbow research analyst Alton Stump.

“This pullback since arrived and has created an attractive entry point in our opinion given short and especially long-term top and bottom-line upside available from DPZ’s model.”

Stump stated that the impressive sequential comp growth has given his firm renewed confidence the company has potential to return to high-teen/low 20 percent two-year stacked growth domestically over the next 12–18 months.

Domino’s Improvement and in mobile technology has been the greatest driver of share gains for the company domestically over the last 36 months.

“We expect both major pizza QSR players to continue to gain share over smaller domestic regional chains and independents.”

Related Links:

Breaking Down Domino's Strategy: Simple Product, Elaborate Experience

Domino's Turns 'Cow Appreciation' Into Fast Food War With 50% Off Online Pizza Orders

Latest Ratings for DPZ

Oct 2019MaintainsMarket Perform
Oct 2019MaintainsOverweight
Oct 2019DowngradesBuyHold

View More Analyst Ratings for DPZ
View the Latest Analyst Ratings

Posted-In: Analyst Color Earnings Long Ideas News Guidance Upgrades Price Target Restaurants Best of Benzinga


Related Articles (DPZ)

View Comments and Join the Discussion!

Wall Street Weighs In On Amazon's Earnings Miss

FDA's Nicotine Cut: Not As Bad As It Looks?