The firm maintained its $90 price target and said it lowered the quick-service pizza delivery company's rating because of a valuation call.
"We contend above-peer comp growth both in the U.S. and overseas, reinvigorated unit growth in the U.S. (helped potentially by a new unit prototype), a more benign food cost environment, and incremental share buybacks will provide support EPS growth of at about 20% in the next two years," said Miller Tabak analyst Stephen Anderson. "However, in light of the 30% rally from the late summer low, we now think DPZ's current share price reflects these positives."
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Separately, TheStreet Ratings team rates DOMINO'S PIZZA INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate DOMINO'S PIZZA INC (DPZ) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company shows low profit margins."