Domino's Pizza (DPZ) May Be Losing Its Innovation Edge - Stifel

Stifel analyst Chris O'Cull reiterated a Buy rating and $300.00 price target on Domino's Pizza (NYSE: DPZ) after conducting a food delivery survey. Stifel also analyzed the promotional messages of Domino's and the third-party delivery firms most aggressive with promotional offers and walked away with the belief that Domino's recent marketing tactics may not be sufficient to combat 3P promotional activity.

The analyst stated "We are concerned DPZ may be losing some of its menu innovation edge, instead relying on a value playbook that successfully gained share from other pizza chains rather than designed to combat the emerging 3P competitive threat. And, while we appreciate the company's patience to weather irrational promotional activity, we project domestic SRS may fall short of the 3-6% long term guidance until its promotional tactics change. That said, our valuation analysis indicates the market is expecting lower sales growth, so we view the current price as a compelling entry point for patient investors".

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 $232.43 yesterday.

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