This ASX growth stock is down 25%: Buy, sell, or hold?

Domino’s Pizza Enterprises Ltd (ASX: DMP) shares have been having a tough time in 2024.

Since the start of the year, the ASX growth stock has lost 25% of their value.

Is this a buying opportunity or should you stay clear of the pizza chain operator’s shares?

Is this ASX growth stock a buy?

The broker community is feeling relatively positive on Domino’s following its half-year results earlier this month.

For example, the teams at Morgan Stanley and Ord Minnett see major upside potential for the ASX growth stock from current levels.

They have price targets of $68.00 and $61.00, respectively. This implies potential upside of 55% and almost 40% for investors over the next 12 months.

To put that into context, a $10,000 investment could turn into approximately $15,500 or $14,000 if these brokers are on the money with their recommendations.

What else is being said?

Elsewhere, Morgans and Goldman Sachs have the equivalent of hold ratings with price targets of $45.00 and $39.70.

Goldman Sachs feels that its shares are about fair value. Though, it acknowledges that there is potential for it to become more positive. It explains:

The company is trading at 25x P/E vs 3-yr EPS CAGR FY23-26e of 15%, which we deem fair relative to the rest of our Consumer/Retail coverage. In order to turn more positive, we would like to see more clarity around Japan/France SSSG pivot, confidence in mgmt team’s ability to execute with local adaptability and hence franchisee payback period to return in key regions to 3-4yrs; we currently calculate ANZ/Europe is ~4years while Japan is ~6years+.

On balance, brokers appear to believe Domino’s could be a decent option for investors look for ASX growth stocks to own.

The post This ASX growth stock is down 25%: Buy, sell, or hold? appeared first on The Motley Fool Australia.

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More reading

• Down 27% in 2024, this leading fund manager forecasts a big turnaround for Domino’s shares
• 25 ASX 200 shares with ex-dividend dates next week
• Here’s how these 3 ASX 200 shares just earned substantial broker upgrades
• Here are the top 10 ASX 200 shares today
• Why Bega Cheese, Domino’s, Lovisa, and Universal Store shares are rocketing today

Motley Fool contributor James Mickleboro has positions in Domino’s Pizza Enterprises. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises and Goldman Sachs Group. The Motley Fool Australia has recommended Domino’s Pizza Enterprises. 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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