The Domino's Pizza Enterprises Ltd (ASX: DMP) share price has continued its positive run and pushed higher again.
In morning trade the pizza chain operator's shares climbed 1% to hit a 52-week high of $54.39.
When they hit that level it meant Domino's shares had gained 33% year to date.
Why is the Domino's share price at a 52-week high?
Although there has been no news out of Domino's today, investors have been buying its shares since the release of its full year results in August.
For the 12 months ended June 30, the pizza chain operator reported revenue growth of 24.4% to $1.44 billion and same store sale growth of 3.6%. On the bottom line, Domino's underlying net profit rose by 6.1% to $141.2 million.
Whilst this wasn't the strongest result, many investors (and short sellers) had been expecting worse from the company.
Bullish broker.
One broker that liked what it saw was Goldman Sachs.
Soon after the release of its full year results, the broker added Domino's to its coveted conviction buy list with a $51.80 price target.
Goldman is upbeat on Domino's prospects following the completion of its store conversions in Germany. It expects this to be the start of new store openings in that market, supported by a strong pipeline of new stores in France.
Overall, it feels this is an indication that the European business is reaching an inflection point.
As a result, Goldman believes the company is well-positioned to achieve double-digit EBITDA growth in FY 2020 and FY 2021.
Since that broker note, Goldman has lifted its price target to $55.30. It appears pleased that the company has recently reiterated its same store sales growth guidance of 3% to 6% and store growth guidance of 7% to 9% for the next 3 to 5 years.
Incidentally, Domino's isn't the only share on Goldman Sachs' conviction buy list. Others on the list include Afterpay Ltd (ASX: APT) and Telstra Corporation Ltd (ASX: TLS).
