FMP
Jun 10, 2024 5:08 PM - Davit Kirakosyan
Domino's Pizza (NYSE:DPZ) shares rose more than 1% intra-day today after UBS analysts raised their price target for the company to $600 from $570 while maintaining a Buy rating.
The analysts believe that Domino's shares remain appealing due to the company's continued sales momentum, strong customer traffic, and a clear path of catalysts that support sustained outperformance compared to other quick-service restaurants (QSRs). They expect Domino's to maintain multi-year sales growth in the U.S., driven by a robust value proposition, enhancements in digital and loyalty programs, improved service levels, menu innovation, effective marketing, and partnerships with third-party aggregators.
The analysts also highlighted Domino's competitive advantage in the current market environment, pointing to attractive promotional offers, below-industry pricing in recent years, and everyday value that makes it one of the most affordable options for feeding a family. Their review of recent Numerator data, along with management commentary, strengthens their confidence in strong customer demand across various income levels, including lower-income consumers.
Despite a 25% increase in shares year-to-date, the analysts see further upside potential as Domino's continues to lead in traffic and same-store sales momentum. The company is also set to accelerate unit growth and leverage a compelling catalyst path to support multi-year earnings growth.
Oct 31, 2023 8:03 AM - Parth Sanghvi
Free cash flow to the firm (FCFF) and free cash flow to equity (FCFE) are two of the most important metrics used in financial modeling. Both metrics measure the amount of cash that is available to a company's shareholders and creditors, but there is a key difference between the two. FCFF measures...
Nov 25, 2023 6:39 AM - Parth Sanghvi
Choosing the Right Valuation Method: DCF vs. Comparable Companies Analysis Introduction: Valuation methods play a pivotal role in determining the fair value of a company, aiding investors in making informed investment decisions. Two commonly used methods, DCF Valuation and Comparable Companies A...
Dec 23, 2023 2:19 AM - Parth Sanghvi
Introduction: Discounted Cash Flow (DCF) analysis stands as a cornerstone in valuing investments, yet its efficacy is contingent upon various assumptions and methodologies. While a powerful tool, DCF analysis comes with inherent limitations and challenges that investors must acknowledge to make i...