Australia's Domino's Pizza operator up on UBS upgrade to 'buy'

Dominos Pizza Enterprises

08/07/2025 03:48

** Shares of Domino's Pizza Enterprises DMP.AX rise 2.2% to A$18.42

** UBS upgrades shares of franchise operator to "buy" from "neutral", but cuts PT to A$22 from A$25

** Brokerage notes co's accelerated cost saving measures to support EBITDA and sales, firm's "comfort" with Visible Alpha estimates for FY25 underlying NPAT

** Supports valuation after DMP lost nearly 16% to A$16.96 on July 2 after CEO stepped down, highlights "solid" balance sheet

** However, risks include lower long-term earnings and concerns surrounding management changes

** Among two brokerages with "buy" rating, other being Jefferies

** Average rating of 14 analysts is "hold"; median PT A$22.10 - data compiled by LSEG

** YTD, DMP down 37.4% vs S&P/ASX200 .AXJO up 5.3%

 (Reporting by Nichiket Sunil in Bengaluru)

 ((nichiket.sunil@thomsonreuters.com))