Brokers' Notes20 Jul 2009 14:15
Domino’s Pizza may have seen sales growth slow and reduced the number of new store openings, but Charles Stanley thinks the pizza delivery group is still in strong shape after this morning’s trading update.
The broker, which keeps its ‘buy’ rating and 305p price target on Domino’s, says: “Earnings expectations are likely to drift up given the confident statement from management that the group is likely to exceed market expectations for the full year.”
Charles Stanley’s current pre-tax profit estimates for Domino’s in 2009 and 2010 sit at £26.5m and £29.5m respectively, but it is placing these under review in light of Domino’s bullishness today. It expects them to climb by 3% and 2% respectively.