The Domino’s Pizza Enterprises Ltd (ASX: DMP) share price has struggled over the past 12 months, but one top broker is tipping a return to glory.
Broker Morgans is bullish on the pizza juggernaut following its recent drawn-out sell-off.
At the time of writing, the Domino’s share price is $68.25, 2.14% lower than its previous close.
For context, the S&P/ASX 200 Index (ASX: XJO) is also down 1.08% today.
Let’s take a closer look at what might have spurred Morgans’ excitement over Domino’s.
What’s got this broker bullish on Domino’s stock?
The next year could be a good one for the Domino’s share price and those invested in the pizza franchising giant.
Morgans was recently quoted by my Fool colleague James Mickleboro as saying:
[A]lthough inflationary pressures have worsened since [the company’s earnings release], we continue to believe there is meaningful upside to the current share price over the next 12 months.
The last time the ASX heard news from Domino’s was back in February when the company dropped its half-year earnings.
The stock tumbled 14% on the back of the results. The company’s profits slumped 5% over the six months to 31 December.
However, the company’s long-term goals might have caught the broker’s eye.
The company expects to more than double its store network by the financial year 2033 – reaching about 6,650 stores. For context, it had 3,227 at the end of the first half.
Additionally, management is focused on identifying acquisition opportunities to grow the company.
Morgans has slapped a $100 price target on Domino’s shares, along with an add rating.
Domino’s share price snapshot
As previously mentioned, the Domino’s share price has had a rough trot lately.
It has slipped 44% since the start of 2022 and is currently trading 40% lower than it was this time last year.
However, if this tip from Morgans pays off, the stock could boast a 46% upside.