Time to pile in was at 27p - plenty of upside9 Jan 2024 12:46
Marston's
Wright suggests brewer and pub brand Marston’s is undervalued, highlighting that its debt levels have fallen after selling property assets and 60% of its brewery business to Carlsberg.
“The valuation it achieved on the disposal means that the remaining 40% of the brewery business that the company still own is valued at around £250m today,” he says.“
That compares to a market capitalisation for Marston’s of less than £200m. It is not inconceivable that somebody will buy that remaining stake from Marston’s in the future.”
Wright highlights that Marston’s has close to £1.8 billion of freehold property with just £1.2 billion of debt against it.
“The entire pub estate should also be able to generate operating profits of more than £170m in the near future,” he says.
“It is obvious that the shares are currently massively mispriced.”