RBC Lowers Price Target on Domino's Pizza
Domino's Pizza
August 11, 2023
On Tuesday, RBC Capital Markets lowered its price target for Domino's Pizza Group PLC (LON: DOM) from 400p to 390p.
The move comes as Domino's faces headwinds, including rising costs and increased competition.
RBC Capital Markets Outlook
In a note to clients, RBC Capital Markets analyst James Watson said that the firm is "increasingly cautious on the outlook for Domino's Pizza." Watson cited several factors, including:
- Rising costs
- Increased competition
- Weakening consumer confidence
Watson said that while Domino's is "a well-managed company with a strong brand," the current environment is "challenging." He added that the firm is "lowering our price target to reflect the increased risks to our earnings forecasts."
Domino's Pizza Response
Domino's Pizza has not yet commented on RBC Capital Markets' downgrade.
Analysts' Consensus
The consensus among analysts is that Domino's Pizza is a "hold." The average price target is 400p, with a high of 450p and a low of 350p.
Risks
There are several risks to investing in Domino's Pizza, including:
- Rising costs
- Increased competition
- Weakening consumer confidence
- Changes in consumer tastes
Conclusion
RBC Capital Markets has lowered its price target on Domino's Pizza Group PLC from 400p to 390p. The move comes as Domino's faces headwinds, including rising costs and increased competition. The consensus among analysts is that Domino's Pizza is a "hold." There are several risks to investing in Domino's Pizza, including rising costs, increased competition, and weakening consumer confidence.
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