Domino's Pizza's (DPZ) shares have a solid risk/reward proposition given the company's opportunities to improve US sales trends as well as its ongoing market share gains, UBS Securities said in a note Thursday.

Even amid the macroeconomic headwinds and increased promotional activity from competitors, Domino's is well placed due to its strong brand positioning, the execution of its strategic plans, as well as rivals' struggles, the note said.

The investment firm also said Domino's improving same-store sales and accelerating global net unit growth in the coming years will likely back upside for its shares from the current multi-year valuation lows.

UBS has a buy rating on Domino's and lowered the company's price target to $375 from $425, citing "near-term category/brand headwins and industry valuation pressure."

Price: 308.20, Change: +4.02, Percent Change: +1.32