Domino’s Pizza ( NYSE: DPZ ) was hit by multiple downgrades on Friday as Baird joined Citi in stepping to the sidelines.
Equity analyst David Tarantino cited weak guidance and disappointing comparable sales as key concerns in the chain’s latest earnings result. As such, he downgraded the stock to Neutral.
“We came away from the Q4 report with lower conviction in the fundamental outlook, and when factoring in our reduced estimates, management’s expectations for slower top-line growth in upcoming years, and the limited visibility to improved U.S. comps performance, we are having difficulty arguing for a significant rebound in the shares on a near-term basis,” he wrote. “We would look to return to a more constructive near-term stance on signs that DPZ’s initiatives are translating to sustainable improvements in top-line performance.”
Tarantino also slashed his price target to $320 from a prior $400. Shares of the pizza giant dipped slightly on Friday, adding to a steep fall after its earnings report on Thursday.
Read more on Citi’s rationale for a downgrade .
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Domino’s catches another downgrade as Baird steps to sidelines