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Buy Domino’s Pizza due to its massive global opportunity: Baird

An employee places a cooked pizza into a delivery box inside a Domino's Pizza Group Plc store.
Jason Alden | Bloomberg | Getty Images
An employee places a cooked pizza into a delivery box inside a Domino's Pizza Group Plc store.

Domino's Pizza size will enable the restaurant chain to beat and under price its competitors, according to one Wall Street firm.

Baird initiated coverage on Domino's Pizza stock with an outperform rating, predicting the chain will gain more share in the world-wide pizza market.

"We view Domino's Pizza as a powerful growth story with an attractive business model that is capable of delivering healthy total shareholder returns on a near- and long-term basis," analyst David Tarantino wrote in a note to clients Monday. "We believe Domino's Pizza is well positioned to capitalize on a visible longer-term growth opportunity within the sizable and fragmented global pizza category, and we see potential for solid operating momentum in 2018 to support positive investor sentiment."