Fuller Smith & Turner PLC (AIM:FSTA) is ticking the boxes at broker Sitfel, though the broker still prefers its pub-owning rival YOUNG & CO 'A' (AIM:YNGA)
Changes to the pub estate and buybacks have prompted Stifel to raise its earnings forecasts for Fullers slightly to 29.3p this year and to 34.2p for 2026.
First-half profits should rise by double-digits to £16.5 million (£14.5 million in the previous first half), although a slow September (industry-wide) "probably reduces the scope for positive surprises".
Stifel's target price for Fullers rises to 750p from 660p, reflecting improving estate quality and margins, plus very strong asset backing.
But Stifel's share price target on Fullers remains a hold as Young's has a similar tale but is on much lower ratings.