Broker snap: City backs a Punch

Panmure Gordon says that Punch Taverns remains a "compelling special situation," after its first quarter trading update Friday.The broker says the pub and restaurant group remains on track to meet full year expectations and consensus estimates of £124m for pre-tax profit aren't expected to change.It keeps its 'buy' recommendation and 105p target price.Broker Peel Hunt also remains confident in the business, noting that group cash is consistent, with cash and bonds at £274m."Today's slightly more positive trading report has little relevance to the value story at Punch, which has everything to do with a clear separation of the value of Spirit and group cash," the broker says. It also rates the shares a 'buy', but with a slightly less ambitious 91p target.