Friday saw the rating for much-loved restaurant chain Domino’s Pizza’s (LON: DOM) shares downgraded by analysts at Deutsche Bank.

The firm, in a note headed by analyst Harishankar Ramamoorthy, cut its rating on DOM to Hold from Buy following a recent rally.

Domino’s Pizza’s London-listed shares surged after its latest quarterly results on August 1 topped consensus estimates, supported by lessening supply chain pressures and lower food costs despite demand remaining pressured.

The stock climbed over 13% on the day and continued higher during the following sessions. However, on Friday, it fell around 2.5% after Deutsche Bank released its note.

Ramamoorthy raised the firm’s price target on the stock to 410p, up from 355p, telling investors that the downgrade is based on the company’s valuation. Deutsche Bank feels Domino’s shares are now fairly valued at current levels.

Our view: While we have no strong opinion on Domino’s shares, we have noticed that Google Search trends for the restaurant chain have declined since 2020. In addition, Google searches for Domino’s are down 14% YoY.

By Sam Boughedda