JPMorgan initiates coverage of Domino's Pizza at 'underweight'

(Sharecast News) - JPMorgan initiated coverage of Domino's Pizza on Thursday with an 'underweight' rating and 145p price target, implying around 25% downside. "Our cautious stance reflects a combination of structural, operational and execution risks that, in our view, are not fully reflected in the current valuation," the bank said.

"With our forecasts materially below consensus, we see the risk-reward as skewed to the downside."

For a comparable investment case, JPM said it prefers 'overweight' rated bakery chain Greggs.

At 1025 BST, Domino's shares were down 1.5% at 187.50p.