Barclays analyst Jeffrey Bernstein has revised his price target for Domino’s Pizza (DPZ, Financial), increasing it slightly from $420 to $425. Despite this adjustment, Bernstein maintains an Underweight rating on the stock. This update comes as part of a first-quarter preview of the restaurant sector.
According to Bernstein's analysis, Domino's faced initial challenges in the first quarter due to unfavorable weather conditions, which impacted comparable sales. Although there was a partial recovery in March, it was not enough to indicate a full rebound. This situation suggests an underlying slowdown in consumer spending, which might continue to affect the company’s performance.
While the restaurant industry often remains sheltered from supply chain tariffs, dwindling consumer demand poses a significant risk. As discretionary spending decreases, Domino's and similar companies may encounter tougher market conditions in the coming months.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 31 analysts, the average target price for Domino's Pizza Inc (DPZ, Financial) is $483.07 with a high estimate of $559.00 and a low estimate of $370.00. The average target implies an upside of 3.16% from the current price of $468.27. More detailed estimate data can be found on the Domino's Pizza Inc (DPZ) Forecast page.
Based on the consensus recommendation from 35 brokerage firms, Domino's Pizza Inc's (DPZ, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Domino's Pizza Inc (DPZ, Financial) in one year is $471.39, suggesting a upside of 0.67% from the current price of $468.27. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Domino's Pizza Inc (DPZ) Summary page.
