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Fly News Breaks for April 17, 2019
DNKN, YUM, DPZ
Apr 17, 2019 | 07:41 EDT
As previously reported, Morgan Stanley analyst John Glass upgraded Domino's Pizza (DPZ) to Overweight from Equal Weight, stating that he thinks the stock's current price reflects 2-3% blended global same store sales growth over the next two years, which he views as too bearish based on its track record as a "best in class operator." Based on third party data on Domino's Q1 app downloads, Glass sees evidence that the market's concerns over decelerating U.S. comps may be overdone, he added. Following recent weakness, Domino's shares now trade at parity with Yum! Brands (YUM), which Glass calls "a high quality but slower growing peer" and not much of a premium to Dunkin' Brands (DNKN), which he calls "a far slower growing business." He raised his price target on Domino's shares to $283 from $268.
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