Why Domino's Pizza Stock Is Piping Hot on Thursday
Shares of Domino's Pizza (NYSE: DPZ) got a big boost from an analyst at Stifel on Wednesday night, and the shares are reacting positively Thursday morning -- up 6.3% through 11:45 a.m. ET.
The investment bank's Chris O'Cull upgraded shares of the pie master from neutral to buy and raised his price target on Domino's stock to $350 a share, implying that even after today's rally, there's still another 7% or 8% upside in the stock -- on top of a 1.6% dividend yield.
O'Cull noted that Domino's shares have "performed poorly" in recent years -- indeed, Domino's stock is down 19% in a market that is up 19% over the past year. The analyst attributed these declines to waning demand for take-out food in the wake of the pandemic, noting that "delivery sales have declined, franchisee profitability has fallen, and unit growth has slowed," says a report on the upgrade from StreetInsider.com.
Source Fool.com
