Domino’s Pizza shares delivered a substantial gain on Tuesday after the pizza delivery company received an upgrade from equity analysts at Jefferies.
Jefferies upgraded Domino’s Pizza shares to ‘buy’ from ‘hold’ and raised their price target to 430p from 410p. The Domino’s Pizza share price was 6% higher at the time of writing.
“We see upside from higher growth, supported by our regional store screening analysis,” Jefferies said in a note.
Domino’s is expanding its footprint across the UK, ensuring more areas are covered by an outlet, which will likely lead to additional revenues in the future.
“Domino’s Pizza got a boost from a positive broker note whereby Jefferies upgraded its rating on the stock from ‘hold’ to ‘buy’, citing new management, improved growth prospects and easing cost inflation,” said Russ Mould, investment director at AJ Bell.
“It might feel as if there is a Domino’s store in just about every major town and city in the UK, but Jefferies is confident it can add a further 360 stores and make money from them. The idea of paying £20 for a takeaway pizza might give some people the chills yet Domino’s has shown there are still ways to shift large volumes even when the economy is going through a more lacklustre period.”
