- Giugno 22, 2023
- Posted by: Oliver
- Categoria: Economics, Finance & accounting
The big debut of Cava Group was applaud-worthy, but a tad on the euphoric side. It’s been a while since we’ve had such a red-hot IPO. Also, although stocks seem to be back into bull market mode, I’m not one to believe that the booming debut of Cava will end well for investors looking to punch their ticket at near $40 per share.
Though I am a fan of Cava, the business, I’m not one to chase IPOs after a boom. Those keen on the name may wish to take a raincheck and let the stock come back down to Earth. IPOs can bust as quickly as they boom. So, those patient enough to wait for things to settle down may be in a great spot to get a better entry point. However, at this juncture, it’s doubtful that the IPO price will be hit anytime soon.
Domino’s Pizza (NASDAQ:DPZ)
Domino’s Pizza was a former Bill Ackman holding that he sold out of almost a year ago. Ackman’s sale turned out to be well-timed, as DPZ stock eventually shed nearly half of its value from peak to trough. The pandemic lockdown days of ordering pizza day after day seem to be over.
Call it a post-lockdown pizza delivery hangover, if you will, but I do believe it’s nearly over after more than a year of post-pandemic levels of normalcy. That’s why I’m staying bullish on Domino’s stock, as I think the top carryout play has room to run once the pizza appetite normalizes.
On Cava’s big debut day, Domino’s stock rocketed more than 6% higher, thanks to a timely upgrade from Stifel, which hiked the name from Hold to Buy, noting that sales could stabilize as carryout numbers begin to heal over the next year. I think Stifel is right on the money. Domino’s stock is fresh off a 52-week low with a forward price-to-earnings (P/E) multiple of just 24.5 times and a price-to-sales (P/S) of 2.4 times, both of which are well below the restaurant industry average of 28.4 times and 6.5 times, respectively.
What is the Price Target for DPZ Stock?
Domino’s Pizza has a Moderate Buy rating, with 12 Buys, eight Holds, and two Sells. At the time of writing, the average DPZ stock price target of $347.05 implies a 4.7% gain for the year ahead.
its more affordable restaurant peers.