Mizuho Upgrades Domino's Pizza to Strong-Buy Citing Growth Prospects

Domino's Pizza has received a strong endorsement from analysts, with Mizuho Securities upgrading its rating to 'strong-buy' and setting a price target of $500, reflecting confidence in the company's growth potential and strategic partnerships, including with third-party delivery services like DoorDash. Despite some mixed ratings from other analysts and a consensus 'Moderate Buy' rating, Domino's reported better-than-expected quarterly earnings and revenue growth, driven by stable delivery operations and carryout services. Insider transactions show increased buying activity, especially by Executive Chairman Jack Cowin, signaling insider confidence in the company’s prospects, although recent insider sentiment has turned somewhat negative with increased selling. Mizuho's optimism is underpinned by expected transaction-driven upside in same-store sales and minimal risks to domestic unit growth due to strong franchisee profitability and international market stabilization. This positive outlook contrasts with some analysts who have adjusted their target prices downward but still maintain buy or hold ratings. Overall, Domino's Pizza is positioned for continued growth supported by strategic initiatives and solid financial performance.