Email Facebook Twitter

EXCLUSIVE: Alastair Smith, Avacta Group CEO gives an Operational Update

ShareCast News

Pub-picking Berenberg upgrades Wetherspoons, downgrades Greene King, Marston's

Wed, 4th Oct 2017 11:58

(ShareCast News) - Analysts at Berenberg provided a mixed review of the UK pubs sector on Wednesday, as it upgraded JD Wetherspoon to 'hold' from 'sell'.

However, Greene King and Marston's were downgraded to 'sell' and 'hold' respectively after choppy trading during the summer months.

While analysts said that Wetherspoons continues to operate capital poorly, revenue deriving from its new mobile app has helped to shore up its books.

Berenberg sees Spoons' recent "exceptional" like-for-like sales growth continuing in the near term, thus balancing out its risk for the moment. It also increased the company's target price to 1,150p from 750p.

Berenberg moved Greene King on to 'sell', even though shares have declined 15% since 8 September: "With LFL growth likely to remain under pressure, margins declining, and leverage set to remain stubbornly high, we see few reasons to own the shares."

Greene's target price was reduced to 450p from 700p by the bank.

Lastly, Marston's was also downgraded to 'hold' from 'buy', though analysts stressed it remained a "well-run business".

"While we believe Marston's has the most disciplined approach to investment of its non-premium pub peers, we feel the shares are likely to tread water until a degree of confidence returns on the LFL sales outlook," the note said.

Related Shares:

Back to ShareCast News

Share Price, Share Chat, Stock Market news at
FREE Member Services
- Setup a personalised Watchlist and Virtual Portfolio.
- Gain access to LIVE real-time Regulatory News (RNS).
- View more Trades, Directors' Deals, and Broker Ratings.
Share Price, Share Chat, Stock Market news at

Datafeed and UK data supplied by NBTrader and Digital Look. While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.