Domino's Pizza (DPZ) shares should benefit from an improving setup amid low expectations, with new CEO priorities providing incremental catalyst, Oppenheimer said in a note Monday.
"With expectations low and sentiment subdued (~15x forward P/E), we believe the stock's setup has improved moving forward," the report said.
The report said the company is shifting more aggressively to drive the business, which could unlock healthier sales into 2027, particularly against an easier comparison cycle.
The report also said new CEO has clear priorities to accelerate same-store-sales and elevate franchisee profitability.
"With the leadership change, we believe DPZ has an opportunity to reorganize its long-term financial targets with 4Q26 earnings to be more investor friendly - most notably its 3%+ annual SSS targets," the report said.
Oppenheimer kept its outperform rating and a $400 price target.
Price: 303.32, Change: -5.32, Percent Change: -1.72
