Domino’s Pizza Inc. tumbled the most in almost two years after KeyBanc Capital Markets cut its rating on the stock, saying it’s gotten pricey.
While the pizza chain has “strong fundamentals,” they’re largely reflected in its all-time high valuation, KeyBanc said in a report on Friday. That leaves less potential for the stock to climb higher. The firm lowered its recommendation to “sector weight,” the equivalent of hold.
Domino’s shares fell 4.8 percent to $110.04 on Friday, the biggest one-day decline since October 2013. Before the drop, the stock was up 23 percent this year.