** Shares in Australia's Domino's Pizza Enterprises DMP.AX gain as much as 6.2% to A$17.59
** Stock rallied on Tuesday following media reports of a potential takeover approach by Bain Capital, but pared some gains after DMP denied such reports
** Media attention highlights DMP's potential for a turnaround, said analysts at Morningstar
** Morningstar expects co's network sales growth to re-accelerate in the medium term; sees the resetting of pricing strategy to improve franchisee profitability and revive same-store sales growth
** Analysts at Jefferies believe there is a material upside if DMP can improve execution
** Brokerage expects a subdued AGM sales update, but cost-out will likely be quantified, which could be a positive catalyst
** Stock down 41.6% YTD
(Reporting by Rishav Chatterjee in Bengaluru)
((Rishav.Chatterjee@thomsonreuters.com))