Domino's Falls After Analyst Downgrades

According to Business Week, “shares of Domino’s Pizza Inc. fell Wednesday after an analyst downgraded the pizza company’s shares, saying the company’s sales gains have moderated.”

“Citigroup analyst Greg Badishkanian lowered his rating on the company to “Hold” from “Buy,” saying the Domino’s already netted much of the expected gain in sales from the heavily marketed revamp of its pizza recipe. ‘Despite recent softening … we still view the launch as highly successful,’ he wrote in Wednesday’s research note. Meanwhile, the company’s 66 percent increase in share price since mid-January means there’s less chance for investors to profit, he said. Also Wednesday, Badishkanian boosted his price target on shares to $19.50, from $18.50 and raised his first-quarter profit estimate to 38 cents per share, up from 30 cents. He raised his full-year forecast to $1.30 per share, up from $1.08 per share.”