Barclays Maintains an 'Equalweight' on Dominos Pizza (DPZ); 1Q11 Top to Bottom Upside; Stability in '11

Barclays maintains an 'Equalweight' on Dominos Pizza (NYSE: DPZ), PT increased from $17 to $21.

Barclays analyst says, "DPZ benefited from a significant US comp rebound in 2010, and such momentum has continued in 2011 (on an appropriate two-year basis). Investors have discovered newfound appreciation for the stability of the global platform, with US comps solid, International industry-leading, and a 95% franchised model to mitigate cost pressures. And when leverage is not a primary concern, the shares of DPZ justifiably outperform. 1Q11 results supported the thesis, with top and bottom line upside, driving today's (and year-to-date) outperformance. With improvement in trends and stability of the model, we believe the outperformance and related multiple expansion justified. We're raising our price target to reflect the improvement, while also using 2012 EPS as a guide. We believe DPZ fairly valued on P/E at 13.5x forward earnings vs a 5-14x three-year range and 10.5x average, while again above peers on EV / EBITDA at 9.5x 2011." (Barclays raises FY11 EPS estimate from $1.49 to $1.58 and FY12 from $1.65 to $1.75)

For more ratings news on Dominos Pizza click here and for the rating history of Dominos Pizza click here.

Shares of Dominos Pizza closed at $21.30 yesterday.

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