Domino's Pizza designated as a Best Idea at Guggenheim
Guggenheim analyst Matthew DiFrisco designated Domino's Pizza as his Best Idea in the restaurant universe, citing his increased confidence in his above-consensus 2020 EBITDA forecast. Domino's outlook has been "meaningfully de-risked" by the company's update of its 2-3 year guidance, which included lowering the domestic same-store sales growth range by 100 basis points, noted DiFriso. He see several drivers of upside to consensus 2020 estimates, as he believes some others may be missing an extra operating week in Q4 of 2020 and not factoring an increase in digital transaction fees that start on January 1, 2020, DiFrisco noted. He raised his price target on Domino's shares to $310 from $280 and keeps a Buy rating on the stock.