Top brokers say Domino’s share price has loads of extra topping in it, here’s why

Young couple having pizza lunch break at workplace.Young couple having pizza lunch break at workplace.

The Domino’s Pizza Enterprises Ltd (ASX: DMP) fell slightly today, but could it have better days ahead?

The company’s share price closed 0.44% lower today to trade at $72.12. In comparison, the  S&P/ASX 200 Index (ASX: XJO) jumped 0.69%.

Let’s take a look at the outlook for the popular pizza company.

What’s ahead?

According to Atlas Funds Management chief investment officer Hugh Dive, Domino’s pizza is due for a boost.

Despite not owning shares in the company, Dive predicted Domino’s could be “well placed to do quite well”. He added in an interview with livewire:

Bit of a caveat, similar to Hugh, we don’t own Domino’s.

But I think that they’ll be well placed to do quite well.

At a recent strategy presentation in Tokyo, Japan, the company announced the appointment of two new executives to boost sales in the continent.

Analyst’s at Ord Minnett also recently retained a buy rating on Domino’s share price.

The broker can see value in the company’s shares, my Foolish colleague James reported recently. Ord Minnett has placed an $88 price target on Domino’s shares. This is 14% higher than their current price.

However, the broker highlighted that Domino’s was facing some headwinds, including the falling Japanese yen and inflation.

Domino’s share price snapshot

The Domino’s share price has dropped 4% over the past 12 months and 10% year to date.

For perspective, the ASX 200 has slid more than 5% in the last 12 months.

Dominos has a market capitalisation of nearly $8.5 billion based on the current share price.

The post Top brokers say Domino’s share price has loads of extra topping in it, here’s why appeared first on The Motley Fool Australia.

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Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Dominos Pizza Enterprises Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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