Loop Capital's continued support for Domino's stock is based on their confidence in the company's performance. The Buy rating and price target of $559 are grounded on a multiple of 32 times the firm's estimated earnings per share for 2025. This valuation reflects Loop Capital's positive outlook on Domino's ability to sustain growth and profitability in the coming years. With the next earnings report due on February 20, 2025, investors can access comprehensive analysis and valuation metrics through InvestingPro's detailed Research Report, part of its coverage of 1,400+ top US stocks. With the next earnings report due on February 20, 2025, investors can access comprehensive analysis and valuation metrics through InvestingPro's detailed Research Report, part of its coverage of 1,400+ top US stocks.
In a detailed commentary, Loop Capital analysts noted that after a slow start in the early fourth quarter with comps rising only 1.0-1.5% in the first ten days, sales growth recovered to 2.5-3.0% over the next 10-11 weeks through early December. However, over the last three-plus weeks of the quarter, the growth rate modestly slowed down to 1.5-2.0%. This change indicates that Domino's has managed to maintain a positive growth trajectory despite the slight dip in performance towards the quarter's end. The company's financial health score of 2.9 (GOOD) on InvestingPro supports this stability, backed by 11 consecutive years of dividend increases.
The analysts highlighted that on a two-year stacked basis, the 2.0-2.5% growth translates to an increase of 4.6-5.1%, which is a significant improvement over the reported 2.3% in the third quarter of 2024. Furthermore, the implied three-year stacks of 5.4-5.9% for the quarter to date represent a modest acceleration from the 4.5% reported in the previous quarter.
Loop Capital's continued support for Domino's stock is based on their confidence in the company's performance. The Buy rating and price target of $559 are grounded on a multiple of 32 times the firm's estimated earnings per share for 2025. This valuation reflects Loop Capital's positive outlook on Domino's ability to sustain growth and profitability in the coming years.
In other recent news, Domino's Pizza (NYSE:DPZ) has seen a series of significant developments. The company reported a 6.6% increase in U.S. retail sales and a 5.1% growth in global retail sales for the third quarter, marking its fourth consecutive quarter of same-store sales growth. Loop Capital has upgraded Domino's Pizza from Hold to Buy, setting a new price target of $559. However, Bernstein SocGen Group revised Domino's financial outlook, reducing the price target while maintaining a Market Perform rating due to concerns over U.S. delivery sales.
Morgan Stanley (NYSE:MS) also adjusted its outlook on Domino's shares, reducing the price target from $510.00 to $496.00 while retaining an Overweight rating. The firm's analysts see several growth drivers, such as expanded third-party delivery services and ongoing product and technological innovations.
Guggenheim Securities maintained a Neutral rating on Domino's shares while reducing its price target from $460 to $450, reflecting a reassessment of the pizza chain's earnings projections for the coming years. Domino's Pizza also announced its intent to change its stock exchange listing from the New York Stock Exchange to the Nasdaq Global Select Market.
Lastly, the company appointed Kate Trumbull as the new Executive Vice President and Chief Marketing Officer, a move expected to enhance its global marketing strategies. These are the recent developments in Domino's Pizza's business operations.
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