Update shared on 28 Nov 2025
Fair value Increased 3.11%Analysts have raised their price target for Domino's Pizza Enterprises from A$20.59 to A$21.23, citing improved sentiment following a recent company update, reduced concerns about equity raising, and more stable trading conditions.
Analyst Commentary
Following the recent update from Domino's Pizza Enterprises, analyst opinion remains mixed, with both optimistic and cautious viewpoints impacting sentiment and valuation.
Bullish Takeaways
- Improved trading conditions and a more stable outlook are contributing to upward revisions in price targets.
- Reduced risk of an equity raise is seen as a key positive. This supports share price stability and investor confidence.
- Incrementally positive company updates and speculation regarding potential corporate activity have boosted sentiment.
- Bullish analysts highlight that revenue trends do not appear to be deteriorating further, which adds confidence to forecasts for medium-term growth.
Bearish Takeaways
- Despite improving sentiment, some analysts remain cautious about the company's earnings execution, particularly given competitive pressures in the food delivery market.
- Ongoing uncertainty about long-term growth in core markets continues to be a concern for those focused on fundamentals.
- Valuation remains a topic of debate, as recent price increases may already reflect much of the positive news and therefore leave less room for upside.
What's in the News
- Private equity firms, including Bain Capital and Kohlberg Kravis Roberts, are rumored to be considering a possible buyout of Domino's Pizza Enterprises. (Key Developments)
- Domino's has appointed Morgan Stanley as its defence adviser amid ongoing takeover speculation. (Key Developments)
- The company reported its first annual loss in 20 years. The share price has fallen 50% this year. (Key Developments)
- Efforts are underway to enhance online channels and simplify the menu in an attempt to boost sales. (Key Developments)
Valuation Changes
- Consensus Analyst Price Target has risen slightly from A$20.59 to A$21.23, reflecting improved market sentiment.
- Discount Rate has increased marginally from 9.41% to 9.41%, indicating a minor adjustment in perceived risk.
- Revenue Growth projections have fallen modestly from 2.11% to 1.99%.
- Net Profit Margin estimates have decreased from 6.56% to 6.34%.
- Future P/E has moved higher from 16.75x to 17.95x, which suggests greater expectations for future earnings relative to the current price.
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