Stock Tips: There’s no such thing as bad pizza… right?
It’s no easy gig analysing share prices and company performance but somebody’s got to do it. This week, two of our experts are a tad divided over a certain pizza stock.
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It’s no easy gig analysing share prices and company performance but somebody’s got to do it. Every week two experts from our Share Tips columnist pool give us their recommendations.
Chris Watt – Bell Potter Securities
BUY
CSL offers compelling value, trading at a significant discount (32%) to its historical average PE ratio. Recent regulatory headwinds in the US flu vaccine market are considered short-term, and long-term growth fundamentals remain strong.
HUB24 is positioned for substantial growth driven by strong market movements and increased net inflows, reflecting a compelling technology proposition. Earnings forecasts are upgraded, supporting a robust outlook for multi-year growth.
HOLD
Domino’s Pizza Enterprises (ASX:DMP)
DMP remains a hold due to uncertainty around sales recovery and franchisee earnings stability. Despite attractive potential stock return off current lows, the turnaround strategy relies heavily on cost savings, which introduces execution risk.
Strong revenue visibility and contract growth provide stability, although recent valuation gains have priced in much of the near-term upside. Earnings revisions are minor, limiting immediate upside.
SELL
Despite steady earnings growth, TCL’s upside is constrained by higher net interest costs and limited capacity expansion.
High optimism and geopolitical hedging have inflated LYC’s valuation beyond fundamentals. Production growth delays and rising operating costs exacerbate near-term pressures.
Sean Conlan – Leyland Private Asset Management
BUY
We expect the E2open acquisition to accelerate Cargowise's growth by enhancing its freight-forwarder solutions and expanding into the beneficial cargo-owner segment.
Symal Group Ltd (SYL)
SYL is a vertically integrated construction business with exposure to data centres, renewables and defence sectors, with clear growth opportunities and a strong balance sheet.
HOLD
We see a potential in specie distribution of RHC's holding of Ramsay Sante as a re-rating catalyst. However, the timing and outcomes as part of management's review remain uncertain.
We expect MPL to continue to control costs and deliver robust margins in its core Health Insurance division. MPL is a solid defensive, with some potential upside left.
SELL
Continued market softness across ANZ and US and heightened competition in the US have weighed on performance. The tariff context adds a layer of uncertainty to US market conditions.
Domino’s Pizza Enterprises (ASX:DMP)
Management is relying on improved execution as a key to turning the business around, however given recent performance and franchisee profitability challenges, this may not be an easy task to address.
The views, information, or opinions expressed in the interviews in this article are solely those of the interviewees and do not represent the views of Stockhead.
Stockhead does not provide, endorse or otherwise assume responsibility for any financial advice contained in this article.
Originally published as Stock Tips: There’s no such thing as bad pizza… right?
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