Nomura Securities Raises Price Target on Domino's Pizza (DPZ) to $152 Following 3Q Beat and Raise

October 19, 2016 7:55 AM EDT
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Price: $167.04 -0.49%

Rating Summary:
    8 Buy, 11 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 24 | Down: 17 | New: 14
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Nomura Securities reiterated a Neutral rating on Domino's Pizza (NYSE: DPZ), and raised the price target to $152.00 (from $148.00), following the company's 3Q earnings report. DPZ reported EPS of $0.96, $0.06 above the consensus estimate. Strength was driven by same store sales growth. 2016 estimates were raised $0.08 to $4.24.

Analyst Mark Kalinowski commented, "Earlier today, Domino’s (DPZ US; Neutral) reported third-quarter EPS of $0.96, surpassing our $0.90 forecast and the Consensus Metrix number of $0.90. The earnings beat was driven by robust U.S. same-store sales growth of +13.0%, ahead of our +10.0% projection and sell-side consensus of +9.1%. Domino’s posted the best Q2 domestic same-store sales growth of the 25 largest restaurant chains in the U.S.—and now looks poised to do so again in Q3, likely by a wide margin. We raise our 2016 EPS estimate by $0.08 to $4.24. Given the enviable domestic same-store sales momentum and a higher base of anticipated earnings coming off this year, we take up our 2017 EPS forecast by $0.15 to $5.10. We introduce our 2018 EPS projection of $6.00. We raise our target price to $152 (from $148) on a 17.5x EV/EBITDA multiple using 2017 estimates, and we maintain our Neutral rating."

For an analyst ratings summary and ratings history on Domino's Pizza click here. For more ratings news on Domino's Pizza click here.

Shares of Domino's Pizza closed at $159.45 yesterday.

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