Domino's shares rally as UBS upgrades to 'buy'
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The news: Domino's shares rallied in early trading after UBS upgraded its rating on the pizza chain following an 11% selloff in the stock since the surprise resignation of chief executive Mark van Dyck last week.
The numbers: Shares were up 2.2% to $18.41 at 11am AEST, after sliding nearly 50% over the last 12 months.
UBS upgraded Domino's from 'neutral' to 'buy' but cut its price target from $25 to $22.
The context: UBS analysts said the upgrade was driven by an acceleration in cost savings, assurances to investors by new executive chair Jack Cowin that the company's balance sheet "is solid", and valuation support following last week's share price decline.
The source: UBS research
