Price Target Adjustment#
BofA Securities has lowered its price target for Domino’s Pizza shares from $496 to $445 while still maintaining a Buy rating. Currently, the stock is trading at $329.42, close to its 52-week low of $328.74. According to Fair Value analysis, the company appears undervalued, placing it on the list of Most Undervalued stocks.
Earnings Forecast Changes#
The firm has adjusted its second-quarter earnings per share (EPS) estimate down to $4.02 from $4.53 due to lower expectations for revenue. For the full year 2026, the EPS estimate has also been reduced to $19.12 from $20.07. This change reflects the softer second-quarter forecast and a first-quarter miss attributed to tax and valuation factors. This downward trend in earnings estimates is consistent with the sentiment among analysts, as 12 have revised their earnings forecasts downward for the upcoming period.
Market Expectations#
BofA has set its target price-to-earnings (P/E) multiple at 1.0x relative, which translates to an absolute P/E of 20.9x, down from a previous target of 1.1x. The firm anticipates that Domino’s Pizza will trade in line with the market until investors feel more confident about the company's long-term growth potential.
Recent Performance and Analyst Reactions#
In its recent earnings report for the first quarter of fiscal 2026, Domino’s Pizza reported an EPS of $4.13, which was below the consensus estimate of $4.28. The company faced weaker global comparable sales, particularly a slowdown in March, despite promotional efforts. U.S. same-store sales increased by only 0.9%, falling short of the expected 2.3%, while international same-store sales decreased by 0.4%. Following these results, several analysts have adjusted their price targets for Domino’s Pizza, with reductions from firms like Evercore ISI, Benchmark, and Wells Fargo, citing lower earnings outlooks and competitive challenges.