Berenberg downgrades Domino's Pizza, shares fall

3rd Aug 2015 11:35

(ShareCast News) - Shares in Domino's Pizza fell as Berenberg cut its rating from 'buy' to 'hold.'At 1043 BST, shares in the takeaway chain were down almost 1% to 899.50p.Berenberg moved its price target for Domino's to 900p from 770p, and said the share price was now up with events.Analysts at Berenberg said in a note they had initiated coverage of Domino's in November 2014 with a 'buy' rating and since then shares rose about 40%.Last week, Domino's reported like for like system sales growth and said its European sales issues were under control.Berenberg said the relatively low penetration of Domino's Pizza sites versus international comparators suggests there was scope to increase the company's UK site count from 881 to 1,200 in the medium term."We believe the fundamental Domino's story continues to be very attractive but we also believe the current multiple is fair for a business growing earnings at c10-11% per annum in 2016-18," analysts said in a note.