Jefferies upgrades Domino’s Pizza to ‘buy’

Jefferies upgraded Domino’s Pizza Group on Tuesday to ‘buy’ from ‘hold’ and lifted the price target to 430p from 410p.

The bank said the upgrade was driven by new management, improved growth prospects, easing cost inflation, and likely shareholder returns.

"We see upside from higher growth, supported by our regional store screening analysis," Jefferies said.

The bank noted that its earnings per share estimates are 6% to 8% ahead of consensus in FY24-FY25 and its upside case reflects a step-up in store growth.

"We expect a March catalyst from an updated store growth target," it said.

At 0910 GMT, the shares were up 4.2% at 361.60p.