Domino's Pizza (DPZ) Q2 results are expected to reflect near-term pressure from macro headwinds, elevated promotional activity, and difficult comparisons, UBS said in a note Tuesday.

Investors expect US same-store-sales growth to decline 1% to 2%, with a focus on sales initiatives, and visibility into the H2 sales trajectory against more difficult comparisons, the note said. The Q2 results are due on July 20.

Despite limited visibility into catalyst details and ongoing macro uncertainty, the report said the stock's valuation at about 15x 2027 EPS is closer to a support level.

The note pointed to an attractive risk/reward profile on potential market share gain and opportunities for stronger sales growth.

UBS kept its buy rating with a price target of $375.

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