Citi hikes Australia's Domino's Pizza on likely benefits from fuel shortage

Dominos Pizza Enterprises

07/04/2026 07:22

** Citi upgrades rating on Domino's Pizza Enterprises DMP.AX to "neutral" from "sell", hikes price target to A$17.50 from A$17.45

** DMP stock up 6.8% at A$17.06, as of Tuesday close, its highest level since March 25

** Citi says DMP's sales could improve as Iran war-led fuel shortage keeps consumers increasingly at home

** Also cites Guzman y Gomez's GYG.AX ~19% jump after positive sales update on Tuesday

** Improving franchise profitability, reduced mobility, normalisation of weather, and an increase in discounting to benefit sales, Citi says

** "Need more conviction around the duration of the turnaround to have a more positive rating," says Citi

** Four of 14 analysts rate DMP "buy" or higher, six "hold", and four "sell" or lower; their median PT is A$19.25 – LSEG-compiled data

** DMP stock down 18.4% this year, including the day's move

 (Reporting by Sameer Manekar in Bengaluru)

 ((Sameer.Manekar@thomsonreuters.com;))