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Domino’s Pizza Continues To Be A Controversial Stock, Credit Suisse Says – Domino’s Pizza (NYSE:DPZ) – Stocks to Watch
  • Mon. May 20th, 2024

Domino’s Pizza Continues To Be A Controversial Stock, Credit Suisse Says – Domino’s Pizza (NYSE:DPZ)

ByShivani Kumaresan

Oct 10, 2022
Domino's Pizza Continues To Be A Controversial Stock, Credit Suisse Says - Domino's Pizza (NYSE:DPZ)

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  • Credit Suisse analyst Lauren Silberman reiterated a Neutral rating on the shares of Domino’s Pizza Inc DPZ and lowered the price target to $375 from $425.
  • The analyst thinks Domino’s continues to be a controversial stock, with sentiments leaning more on the positive side.
  • Easing compares, incremental price and service improvements supportive of an acceleration in U.S. same-store sales, and its strong value positioning supportive of relative outperformance in a more challenging consumer backdrop are seen as positives in bulls’ view.
  • The bear case points to the U.S. demand concerns amidst an increase in promotional activity.
  • The increased level of promotions, Silberman thinks, has fueled concerns on underlying demand based on the view that this level of activity would be unnecessary if same-store sales challenges were only related to delivery driver shortages.
  • Though bulls are hopeful that incremental price increases & potential 3P partnerships offer upside to same-store sales, the analyst continues to believe that 3P partnerships would be limited to white label fulfilment rather than marketplace presence.
  • Also Read: Is Domino’s Pizza Still Hot? Demand Weakness Concerns Are ‘Overblown,’ Analyst Says
  • Price Action: DPZ shares are trading lower by 2.38% at $307.04 on the last check Monday.
  • Photo Via Wikimedia Commons

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Image and article originally from www.benzinga.com. Read the original article here.