Deutsche Bank downgrades Domino's Pizza, shares drop.
Domino’s Pizza slumped on Tuesday as Deutsche Bank downgraded the stock to hold’ from ‘buy’ and cut the price target to 235p from 309p, pointing to near-term cautiousness.
Domino's Pizza Group
16 September 2025 09:05:04
Source: Sharecast
"The investment case for Domino's Pizza has materially changed over the last two years," the bank said.
"From a formula which focused on returning the majority of free cash flow to shareholders through buybacks, management has been keen to reinvest this cash, including a potential brand acquisition, in order to accelerate earnings growth.
"However, this comes at a cost. Uncertainty over timing and execution has weighed on the stock, and as a consequence, a resumption of a share buyback has naturally become an increasingly attractive alternative."
Deutsche Bank said recent moves to announce a small buyback and launch a chicken sub-brand appear to be somewhat of a compromise.
At 0900 BST, the shares were down 3.4% at 196.90p.
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