Cowen cut Domino's price target amid ongoing worries over the pizza company's staffing issues.
SEANA SMITH: All right, my play today, Domino's. Cowen lowering its price target on the stock because of two headwinds, they say-- delivery driver staffing levels and also a slower pace of store openings potentially. Now, analyst Andrew Charles writing in a note that staffing levels for delivery drivers has plateaued in the current quarter, and that quote does not lend confidence to an acceleration here in three-year trends.
He also pointed to a risk that 2023 openings trailing the 6% to 8% long-term guidance that we got out here from Domino's ahead of time. Cowen updating its price target to just about 362 bucks, comparing that to where we are today at $314 a share, still about an 11% upside. So, yes, Cowen reining in some of their expectations, Dave, when it comes to what they expect to see over the next 12 months, although still much higher from where we're trading today.
DAVE BRIGGS: Contraire, says BMO analyst Andrew Strelzik, he's got a buy and a $430 price target. And that's a 35% upside, citing their own survey that says 80% of their own respondents indicated a desire to increase spending over pizza in the next six months. This is recession food. Domino's Pizza, you know is my personal favorite. And if we do get a recession--
SEANA SMITH: Oh, yeah, I don't understand that. But that's a whole other conversation.
DAVE BRIGGS: --$8 three-item pizzas is a steal.
SEANA SMITH: You can't beat the price. The taste, you can beat elsewhere. I know, we can debate about it. We live--
DAVE BRIGGS: We're going to agree to disagree.
SEANA SMITH: --in one of the best cities for pizza, and you order Domino's, but--
DAVE BRIGGS: It's tremendous.
SEANA SMITH: All right, we'll leave it there.
DAVE BRIGGS: It's delightful. I'm going to get you some Domino's. You are going to love--