Domino's Pizza, Inc. DPZ shares are trading higher on Thursday after Stifel upgraded Domino's stock from a Hold to a Buy rating.
The Details:
Chris O'Cull, analyst from Stifel, upgraded Domino's rating from Hold to Buy and also raised its DPZ price target from $320 to $350 per share.
Stifel's update on Domino's Pizza listed many reasons for the upgraded rating and price target including Domino's plans to enhance its ordering app and loyalty program in the Fall. The upgrades to the customer app are anticipated to improve sales performance, improve order conversion rates and leverage targeted marketing efforts.
Lower commodity costs including cheese, wheat, chicken breast, bacon and diesel fuel are predicted to boost franchise profitability, while a recent gathering of franchisees aimed to improve service quality and prioritize customer satisfaction. The analyst also noted the customer carry-out channel represents a significant growth opportunity for Domino's, and stabilizing delivery sales after the COVID-related spike will be a key catalyst for the company's shares.
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DPZ Price Action: According to Benzinga Pro, Domino's Pizza shares are trading nearly 6% higher at $323.89 at the time of publication.
Image: Courtesy of Domino's Pizza, Inc.
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