Goldman Sachs Starts Domino's Pizza (DPZ) at Neutral, Citing Uncertainty in the US

June 1, 2012 7:12 AM EDT
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Price: $165.57 +0.39%

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Goldman Sachs initiates coverage on Domino's Pizza (NYSE: DPZ) with a Neutral and $35 price target, saying while the emerging markets story is unfolding, the US is unclear.

The firm said the company is in the "Fountain of Youth" phase of its lifecycle, with emerging markets likely to provide growth for many years to come. Particularly, India appears on pace for hit 10% of all units by 2015.

Shares are rated Neutral due to due to uncertainty in the US, which is still a big driver of the company's financial results.

"The US pizza delivery market is shrinking, periods of outperformance (as DPZ just experienced) tend to be fleeting, and our surveys suggest the Domino’s brand is weak relative to competitors," the analyst comments.

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 $30.71 yesterday.

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