Domino's Pizza (NYSE:DPZ) was lifted to Outperform from Market Perform with a new price target of $450, up from $420 per share at TD Cowen on Tuesday.
Analysts told investors in a note that their firm sees positives for the company heading into 2024 and 2025, with greater confidence in DPZ's upside to US same-store sales.
"We forecast the enticing 2024-25 US sales narrative from the Uber (NYSE:UBER) partnership & self-help initiatives will drive positive sales revisions & organic EPS beats," the analysts wrote.
"Our valuation work suggests favorable risk/reward of $343 downside/$500 upside, while we argue downside is limited by opportunities to sign new delivery partners once Uber's exclusivity expires at 2024-end to strengthen the 2025 narrative," they added.
The analysts noted that DPZ is trading at a 13% premium to peers, but they still see further upside ahead. The stock is up more than 1% in premarket trading and has gained more than 11% so far this year despite a 3% slide over the last month.