Nicholas Batram at Peel Hunt looks ahead to the Q1 interim management statement from Domino’s Pizza on Wednesday 2 April. He issued a Hold recommendation but said its shares are “moving closer to buying territory”.
In a note subtitled “UK on fire”, Batram said: “For the first seven weeks of the year, UK like-for-like sales were +14.6%. Even allowing for the soft comparative in 2013, this was still an impressive result.
“Given the volatility, it is very difficult to predict just where Q1 will come out. The second half of the first quarter in 2013 was particularly strong (up double-digits); therefore we would expect a decline from the 14.6% reported at the time of the finals.”
Batram issued a Hold recommendation for Domino’s Pizza at a Target Price of 591p.
“The share price has drifted back post the final results and, given the uncertainty in Germany and ahead of a new CEO, this is not surprising. At the current time, we don’t see a need to rush in, but the shares are moving closer to buying territory.”