Domino’s price target raised to $450 by Oppenheimer as pizza chain added to ‘top picks’

Oppenheimer has raised its Domino’s Pizza Inc.
DPZ,
-0.83%
price target to $450 from $427 and added the pizza chain to its list of “top picks,” citing the positive impact of same-store sales. “We view DPZ as an under-appreciated revival story into ’24,” wrote Oppenheimer analyst Brian Bittner, in a note released Tuesday. “Our analysis suggests SSS have tangible drivers to bend trends above consensus in ’24 which could: 1) drive positive earnings revisions, 2) validate unit growth restoration, and 3) repair investor sentiment.” In its second-quarter results in July Domino’s profit beat expectations but its revenue surprisingly declined. The company reports third-quarter results before market open on Oct. 12. “Over the past 18 months, our stance had been less bullish owing to a downward revision cycle that we now believe has bottomed and will reverse,” wrote Bittner. “We don’t expect upside to 3Q23 results (on 10/12), but are attracted to the event path thereafter including our HQ visit (on 11/3), Investor Day (on 12/7) and future results.” Shares of Domino’s Pizza have fallen 0.8% in the last month, compared with the S&P 500 index’s SPX
SPX,
-1.45%
decline of 3.6%.