Domino’s Pizza shares jumped almost +4% on Wednesday, following a rating upgrade from a Morgan Stanley analyst.
Morgan Stanley analyst John Glass raised his rating on the pizza chain company to overweight from equal weight citing "attractive valuation relative to slower-growing peers."
Glass also raised his price target on the stock to $283 from $268.
The current consensus estimates of Domino’s same-store sales growth is in the range of 2%-3% for the next two years, compared to the 5%-6% growth over the preceding two years. But according to Glass, the consensus expectation of slower growth is "too bearish based on history for a best-in-class operator".