Morgan Stanley cut its price target on the stock to $535 per share, down from $541. The stock closed Thursday's session at $481.40 and slipped 2.3% in recent Friday pre-market trading to $470.
"This is largely a valuation call," Morgan Stanley analysts John Glass, Brian Harbour and Raghav Nayar said in a Friday note to clients. They noted the stock was the 47% up in 2021, the best performer in their coverage, but is "now presenting more limited upside" to the firm's price target on the stock.
"While DPZ still embodies many of the characteristics of a great long-term growth compounder, we see limited justification for further multiple expansion, especially as DPZ's sales growth will likely [begin] to normalize after experiencing substantial COVID (and stimulus) benefits" in 2020 and 2021, the analysts added.
Domino's Pizza has an average investment rating of outperform among analysts polled by Capital IQ, with price targets ranging from $416 to $642.
(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)
Price: 466, Change: -15.4, Percent Change: -3.2
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