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Broker snap: Wetherspoon rating too low says Panmure
Thu, 09 Feb, 2012
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Broker snap: Wetherspoon rating too low says Panmure
Thu, 11 Mar 2010, 12:29:00
Pub owner
JD Wetherspoon's
interim results were 6% ahead of broker Panmure Gordon's forecasts, due to a lower net finance charge. Wetherspoon is trading on a current year (2010) P/E of 13.9 times and an EV/EBITDA ratio of 7.1 times. The broker believes this is too low for a compelling roll-out story with a stabilised cost base that is now well positioned to benefit from increasing LFL sales growth and improving margins. Its stance remains 'Buy' with a 600p price target.
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