Citi analyst Sam Teeger has sharply revised his outlook on Domino's Pizza Enterprises (ASX:DMP), slashing the company’s price target by 25% to A$23.82 on the back of ongoing challenges in its Japanese operations.
“We see risk that the turnaround in Japan may be tracking behind expectations following today’s announcement regarding the CEO transition in Japan,” Teeger said. “Thus we have subsequently lowered our like-for-like sales forecasts for the market, and lowered our group margin assumptions.”
Teeger downgraded his FY26 profit forecast by 5% and removed a 10% premium previously applied to Domino’s Australia and New Zealand business, citing the relative outperformance of Domino’s Pizza Group in the UK. He also increased the discount on the Asia business in his valuation model — raising it from 50% to 65% relative to Domino’s Pizza Inc — due to heightened execution risk in Japan.
Shares in Domino’s were last down 2.2% to A$21.76.