ASX 200 stocks Domino's Pizza Enterprises Ltd (ASX: DMP) and PEXA Group Ltd (ASX: PXA) have been mixed performers in 2024.
Whilst PEXA shares are up 20%, Domino's stock has slipped more than 50% into the red since trading resumed in January.
Whilst the returns are different, both ASX 200 companies have one thing in common – Goldman Sachs is forecasting gains for each of these stocks moving forward.
As of writing, Domino's shares are priced at $30.09, whereas PEXA shares are swapping hands at $13.37 apiece.
Let's dive in.
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ASX 200 stocks poised for growth
Domino's Pizza faced challenges in FY24. The ASX 200 stock saw a 1.9% decline in net profit and reduced its dividends by 4%.
However, CEO Don Meij is optimistic. In the report, he pointed to cost-cutting efforts and new product launches, along with plans to improve the struggling French market by partnering with Uber Eats.
Goldman Sachs is equally as optimistic about Domino's future, rating it a buy with a price target of $40 per share.
This signals a potential 33% upside at the time of writing.
Goldman believes the worst is behind for Domino's. It says the company is expected to see improvement in FY25, thanks to store closures in Japan and France, amongst other factors.
We saw the beginning of rapid store closures in both Japan and France as a positive sign to restore network quality and profitability. Net net, we forecast <1% total store growth in FY25 while network
sales/store +2%.
The broker forecasts a 7% growth in pre-tax earnings in FY25, driven by a projected 34% growth in the second half of the year.
Consensus also rates the ASX 200 stock a buy, according to CommSec.
PEXA Group for further upside
PEXA shares have been strong since the company reported its FY24 earnings, extending gains to 3% in the past month.
The company reported a 21% increase in revenue for FY24, whereas operating profit rose by 16%. Management says the platform now supports up to 89% of property transactions nationwide.
Goldman Sachs is also bullish on PEXA. It maintains a buy rating on the ASX 200 stock with a price target of $15.70.
This suggests a 17% upside at the time of writing.
The broker likes PEXA on several fronts, including the volume of property transactions it handles in Australia.
We see the PEXA Exchange as core digital infrastructure with a relatively defensive growth profile supported by CPI-linked price increases and mid-cycle property transactions growing in line with housing stock.
We believe PEXA's market share is resilient despite interoperability being an initiative to bring more competition to the industry, and forecast incremental share gains over the cycle. We see significant upside from the UK and PEXA Digital Growth (PDG), opening a combined incremental TAM of A$1bn..
It also says PEXA's valuation "screens favouraby", indicating that it could be priced fairly compared to its peers.
Consensus rates PEXA a buy as well, according to CommSec.
Foolish takeout
Goldman Sachs says these two ASX 200 stocks are poised for growth. Domino's shares are down 42% in the past year, whereas PEXA stock is up 18%.
