DMP – Citi rates the stock as Upgrade to Neutral from Sell

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Citi has upgraded to Neutral from Sell post significant de-rating of the share price since November last year. The analysts declare they don’t see any near-term upside earnings risks, but they retain the view this company has “significant” earnings growth prospects in Europe.

On Citi’s projections, average EPS growth will be 16% over the next three years. On this basis, the target price is set at $43.40 (down from $45.20).

In terms of the upcoming reporting season, Citi believes top line is likely to be trending near the low end of the range, with Domino’s chances for beating its own guidance not seen as high. The suggestion made is that when the share price were to fall below $39, Citi will be ready to upgrade to Buy (all else remaining equal).

Sector: Consumer Services.

Target price is $43.40.Current Price is $43.48. Difference: ($0.08) – (brackets indicate current price is over target). If DMP meets the Citi target it will return approximately 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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