Broker tips: Domino's, Just Group, Glencore
By Digital Look
Date: Tuesday 08 Jul 2025
(Sharecast News) - Shore Capital has reiterated a 'buy' rating for Domino's Pizza ahead of its interim results next month, but said it was taking "a more cautious stance" given the subdued consumer backdrop.
At the end of April, when Domino's last updated the market, the pizza delivery chain reported slower-than-expected like-for-like sales growth in the first quarter, up just 0.5%.
Following on from that, Shore Capital highlighted an unplanned trading update from bakery chain Greggs last week, which cited weak footfall in June due to the hot weather. While Domino's is less impacted by weather, since the majority of its orders take place in the evening, the broker reckons that the business is not completely immune to the challenges that Greggs has been facing.
Meanwhile, recent "persistent negative" consumer confidence figures from market research firm GfK, Shore Capital said, along with five straight months of decelerating family spending power, as shown by the Asda income tracker.
"Ahead of the Domino's H1 results next month, we take a more cautious outlook both in the current and outer years," the broker said as it cut its current-year EBITDA forecast from £150m to £144m.
"We believe there is still much to like, particularly in terms of loyalty potenital for increasing orders; however, we prefer to remain cautious ahead of the interim result."
Nevertheless, with the stock trading at an EV/EBITDA multiple of 11, which it still a discount to others in the sector, Shore Capital still sees upside from the current share price.
Berenberg initiated coverage of Just Group on Tuesday with a 'buy' rating and 209p price target.
It noted that Just Group - which sells annuities in the UK - creates value by investing around 45% of new annuity funds in illiquid assets.
Just Group's main target metric is tangible net asset value (TNAV) the sum of tangible shareholders equity and the contractual service margin (CSM) net of tax, it said.
"The TNAV compound annual growth rate was 16% over 2022-24, Just Group targets a greater than 12% return on equity, which is the main driver of TNAV growth, and we forecast a 13% TNAV CAGR 2024-28E, which is an attractive and sustainable growth rate in our view," Berenberg said.
JPMorgan Cazenove resumed coverage of Glencore on Tuesday with an 'overweight' rating and 360p price target following a two-year period of restriction relating to Viterra's merger with Bunge Global.
The bank said "optionality" is a central theme for its positive outlook on the miner.
It noted that Glencore has lagged the MSCI Europe by 45% since May 2024 due to weak operating results and more than 25% lower coal prices.
JPM said group production will significantly step up in H2'25 led by copper, which it forecasts will translate into around 150% higher group earnings in 2026, 250% higher in 2027 versus 2025.
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