2023-07-06 15:59:24 ET
JPMorgan added Domino's Pizza ( NYSE: DPZ ) to the firm's Analyst Focus List on Thursday after walking away impressed from a headquarters visit with the company's top management.
Analyst John Ivankoe and team are optimistic about the pizza chain operator's energy in regrowing U.S. delivery transactions as enthusiasm across the system for reinventing the operations cycle through a rebuilt leadership team of both external and internal talent.
The firm sees an improving staffing and execution environment at Domino's ( DPZ ) matched with easing commodity prices and a stable consumer environment that is being generally driven by employment gains and post-COVID real income levels. Domino's ( DPZ ) management is noted to be optimistic that a reacceleration in U.S. growth in late FY23 will occur and the global system will grow units at +1K units a year.
JPMorgan derived a price target of $360 on DPZ based off a 4.25% FY25 free cash flow yield. Shares of DPZ fell 0.46% in late afternoon trading on Thursday vs. the 52-week trading range of $285.84 to $426.44. Short interest on DPZ is at only 4.00% of the total float.
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Domino's Pizza lands on JPMorgan's Analyst Focus List with growth initiatives still in play