Nomura Securities Raises Price Target on Domino's Pizza (DPZ) to $152 Following 3Q Beat and Raise
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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."
Shares of Domino's Pizza closed at $159.45 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
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