Domino's Pizza: UBS upgrades sell rating

(CercleFinance.com) - A UBS analyst today said that he is upgrade his rating on the Domino's Pizza share from "sell" to "neutral," believing that its valuation now prices in risks around the company.


“Concerns around Domino's price position and the lack of resolution to franchisee discontent short-term stops us from being more incrementally positive,” UBS regrets however, which has trimmed its 12-month target price from 250 pence to 245 pence, due to reduction in the pace of point-of-sale deployment.

Indeed, on this point, UBS now expects 30 new restaurants to be opened per year, against 50 previously and the group's target of 80. The analyst also remains skeptical about the group's announced target of 1,600 outlets in the UK.


Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.