Domino's Pizza Enterprises (ASX:DMP) shares jumped more than 9% to $21.01 after executive chairman Jack Cowin’s strategy and cost-savings update at Wednesday’s AGM prompted a round of target price upgrades and a more constructive tone from several brokers.
Citi analyst Sam Teeger said he and colleagues left the meeting “incrementally more positive” on the stock, citing improving franchisee profitability and a de-risked balance sheet following recent debt refinancing. However, he remains cautious given ongoing challenges in the key France and Japan markets and uncertainty over whether cost-out initiatives could disrupt operations or impact food quality. Citi lifted its rating to neutral from sell and raised its target price by 50% to $19.85.
Neutral outlook
Jarden analysts led by Ben Gilbert retained a neutral rating but lifted their valuation to $19 from $18.
“Near-term, DMP is confident in exceeding consensus profit for FY26, a positive (albeit cost-driven), with the ability to deliver sustainable top line (not cost-driven) growth into FY27+ a key focus,” they wrote. “We retain neutral, owing to significant execution risk, growing industry competition and a weaker market backdrop, but acknowledge today’s update was an improvement,” adding that industry performance in Australia appears to have recently bottomed.
UBS analyst Shaun Cousins kept a buy recommendation and raised his target price from $19.00 to $21.50, expecting higher earnings as cost-saving measures progress. He argued the “risk reward remains attractive” and that the new cost-saving target underlines a greater profitability focus at both Domino’s and its franchisees, which he sees as a prerequisite for new store growth.
By contrast, Morgan Stanley’s Melinda K Baxter stayed underweight, though she nudged her target price up to $15.30 from $14.60. While FY26 profit guidance was a modest beat versus consensus, she flagged “near-term headwinds and execution risk” as ongoing concerns.