MENU

Top broker lifts its price target on Domino’s Pizza Enterprises Ltd shares

Although it has given back the majority of its early gains, the Domino’s Pizza Enterprises Ltd. (ASX: DMP) share price is pushing higher in afternoon trade.

At one stage the pizza chain operator’s shares were up 3% to $47.72. At the time of writing they are 0.8% higher to $46.72.

Why did its shares climb higher?

This morning Goldman Sachs released an upbeat broker note on Domino’s following yesterday’s announcement relating to its Halo Pizza acquisition in Germany.

That announcement revealed that the company had successfully completed the €32 million 170 store Hallo Pizza chain acquisition which was announced in October of last year.

Although the acquisition was expected to close early in 2018, this appears to have happened sooner than Goldman Sachs had anticipated.

As a result of this and minor revisions to its foreign exchange forecasts, the broker has lifted the price target it has on Domino’s shares.

Goldman’s new price target is $49.50, approximately 6% higher than the current share price. The broker has retained its neutral rating.

Should you invest?

I think that Domino’s is a great option for buy and hold investors due to its international expansion and the store growth that this will bring.

The pizza chain operator is targeting 4,650 stores by 2025, more than double its store count at the end of FY 2017. Further, it expects to greatly increase its margins during this time as well, potentially leading to strong earnings growth for the foreseeable future.

In light of this, I would suggest investors consider investments in Domino’s and industry peer Collins Foods Ltd (ASX: CKF) this year.

Especially as I feel Goldman Sachs’ price target is a little on the conservative side. As a contrast, Morgan Stanley and UBS both have buy ratings on its shares at the moment with price targets of $53.00 and $60.00, respectively.

As well as Domino's and Collins Foods, I think these high-flying growth shares would be great options for investors.

Top 3 ASX Blue Chips To Buy In 2018

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for 2018."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies moves – we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor James Mickleboro owns shares of Collins Foods Limited. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…

Including:

The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!