Credit Suisse downgrades FY22-24 forecasts on the back of currency translation for Japan and Europe. Nevertheless, the company’s strategy update was consistent with long-term growth assumptions.
The Asian strategy highlighted an increasing scale advantage as Domino’s Pizza Japan expanded to all prefectures in FY22. Franchisees in Japan also experienced improved profitability in FY22 compared with FY19.
Neutral maintained. Target is reduced to $71.66 from $87.80.
Sector: Consumer Services.
Target price is $71.66.Current Price is $66.20. Difference: $5.46 – (brackets indicate current price is over target). If DMP meets the Credit Suisse target it will return approximately 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).
