The firm said it lowered its rating on the pizza restaurant chain based on the company's free cash flow, which is lower when compared to Domino's competition.
Bank of America/Merrill Lynch lowered its price target on the stock to $68 from $77.
Separately, TheStreet Ratings team rates DOMINO'S PIZZA INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate DOMINO'S PIZZA INC (DPZ) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including poor profit margins and weak operating cash flow."