NICK BATRAM PEEL HUNT
Trading remains tough, but the group continues to deliver both top-line and margin growth. The quality of the estate and management together with the undemanding rating leaves Greene King as a core “Buy” in the
sector. We retain our 702p target price.
SIMON FRENCH PANMURE GORDON
Our fear is that if the group does not utilise its valuation to make acquisitions then the market will de-rate the stock. The stock trades on an earnings multiple of 9.3x, compared to the sector average of 9.1x. We view the stock as fully valued and reiterate “Hold” and a 607p target price.
DOUGLAS JACK NUMIS
We believe the shares are on the right earnings multiple, but our stance is to continue with an “Add” recommendation to reflect an estimated eight per cent earnings growth, a four per cent dividend yield and a reasonable trading backdrop for food-led residential pubs in 2013. Target 710p.