Here's why the Domino's (ASX:DMP) share price is sizzling hot today

The Domino's Pizza Enterprises Ltd (ASX:DMP) share price is storming higher on Monday. Here's why its shares are rising…

| More on:
asx pizza share price represented by hand taking slice of pizza

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Domino's Pizza Enterprises Ltd (ASX: DMP) share price has been a positive performer on Monday.

In afternoon trade, the pizza chain operator's shares are up over 4% to $108.44.

Why is the Domino's share price charging higher?

Today's gain appears to have been driven by a broker note out of Citi this morning.

According to the note, the broker has taken its sell rating off the company's shares and upgraded them to a neutral rating.

Citi also increased its price target by approximately 44% to $104.20.

What did the broker say?

Citi has been looking at the company's options in Europe and sees scope for Domino's to expand into a number of new markets such as Italy and Spain.

At present, the company is the largest franchisee outside of the USA. It holds the master franchise rights to the Domino's brand and network in Australia, New Zealand, Belgium, France, The Netherlands, Japan, Germany, Luxembourg, and Denmark.

From these markets, Domino's is aiming to grow its network from ~2,800 stores today to 5,550 stores by 2031.

However, Citi believes that Domino's could add a further ~2,500 stores to this total by expanding into other European markets. It notes that this would boost its profits materially.

Can the Domino's share price go higher?

As you might have noticed, despite lifting its price target by 44%, the Domino's share price is still trading beyond it. This would imply that the upside from here is not only extremely limited, but the risk could even be to the downside.

The good news is that another leading broker still believes the Domino's share price can go even higher. That broker is Morgans, which currently has an add rating and $119.00 price target on the company's shares.

Based on the latest Domino's share price, this implies potential upside of 10% over the next 12 months.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Dominos Pizza Enterprises Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Gainers

Ten happy friends leaping in the air outdoors.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a rough start to the trading week for investors this Monday.

Read more »

two computer geeks sit across from each other with their laptop computers touching as they look confused and confounded by what they are seeing on their screens.
Share Gainers

ASX tech shares outperformed US tech stocks by 2:1 in FY25. Here's why

Forget the Magnificent 7! Aussie tech shares had twice as much price growth as US tech stocks in FY25.

Read more »

Three happy office workers cheer as they read about good financial news on a laptop.
Share Gainers

Why Bellevue Gold, Cobram, Hub24, and Nanosonics shares are pushing higher

These shares are starting the week on a positive note. But why?

Read more »

Hands reaching high for a trophy with a sunset in the background.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a cracking end to the trading week for ASX investors.

Read more »

A smiling businessman in the city looks at his phone and punches the air in celebration of good news.
Share Gainers

Why ARB, Cleanaway, Hub24, and RPMGlobal shares are storming higher today

These shares are ending the week with a bang. But why?

Read more »

Five people in an office high five each other.
Technology Shares

5 best performing ASX 200 tech shares of FY25

Some of the technology sector's biggest names led the charge in share price growth last financial year.

Read more »

A young male ASX investor raises his clenched fists in excitement because of rising ASX share prices today
Share Gainers

3 ASX shares that rose 100%+ in FY25

Let's see why these shares delivered huge returns for their shareholders in the last financial year.

Read more »

Silhouettes of nine people climbing a steep mountain to the top at sunset, and helping each other along the way.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors had a wild ride this Thursday.

Read more »