UPDATE: Bernstein Starts Domino's Pizza (DPZ) at Underperform

Bernstein analyst Danilo Gargiulo initiates coverage on Domino's Pizza (NYSE: DPZ) with a Underperform rating and a price target of $334.00.

The analyst comments "Domino's: Pizza party is over (DPZ, Underperform, TP $334, -9% potential downside). Pizza LSR is a challenging category, as consumers have access to more delivery options - a channel that was exclusive to the Pizza LSR segment only a few years ago. Additionally, we expect aggregators to continue to reduce Domino's tech and delivery competitive advantage, while we expect that franchisees' profitability will be poised to suffer short-term pressures, leading to lower unit growth. We are estimating a multiple contraction from ~26 P/E NTM to ~22 P/E NTM (~-15%) and EPS growth of 7% (vs consensus 14%), leading to ~9% share price downside. We rate DPZ stock at $334 1 year TP."

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 $362.77 yesterday.

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