Domino's Pizza Enterprises has recently exercised its put option over remaining shares in its German joint venture and made an associated $165m capital raise.

The dilution effect of the capital raise outweighs the accretive outcome of removing minority interests from forecasts, yet the broker's target rises to $90 from $88. The target takes into account a recent share price rally in the global quick service restaurants (QSR) sector.

The Add rating is unchanged and Morgans notes Domino's Pizza Enterprises is among its Best Ideas.

Sector: Consumer Services.

Target price is $90.00.Current Price is $66.36. Difference: $23.64 - (brackets indicate current price is over target). If DMP meets the Morgans target it will return approximately 26% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2022 Acquisdata Pty Ltd., source FN Arena