Collins Stewart thinks that consensus forecasts for FY10 are materially too low. It sets a target price of 690p – well above the current share price of 566p. It expects earnings per share forecasts to increase ten per cent to 30p. Valuation based on long term potential remains unchanged, and the broker advises “buy”.
Rumours of advanced talks over a £500m refinancing arrangement drive Seymour Pierce’s short term “sell” recommendation. It suggests that the rate on the facility will be three times that of the current facility. Due to concerns about the impact on Wetherspoon’s balance sheet, the broker maintains its target price of 400p.
Altium Securities expects Majestic to remain resilient as competition leaves the sector. Coupled with a strong management team and healthy track record, the broker feels confident in increasing its target price by 30p to 300p. Believes Majestic has consolidated its target market, and the broker reiterates its “buy” rating.