Broker Panmure Gordon has raised a glass to pub group Greene King plc (LON:GNK), repeating a 'buy' recommendation after the firm's interim results for the six months to October 16.
The firm's adjusted pre-tax profit was up 14.6% to £139mln on revenues, which were 13.8% higher.
Though the pub company like-for-like (LFL) sales, up 1.3%, were a 'little disappointing', analyst Anna Barnfather notes, she says the second quarter was higher against challenging comparatives and that trading had improved since the period end.
"Greene King is vulnerable to a downturn in consumer confidence/consumer spending," she noted.
But its freehold backing, low rent roll and self-help initiatives make it less operationally geared than many of its leasehold pub and restaurant peers, she said.
Importantly, the company now expects to achiev synergies from group businesses of £30mln this year - a year ahead of its original target, says the analyst.
Panmure forecasts pre-tax profit of £280mln and EPS (earnings per share) of 73.7p for 2017 – towards the top of consensus.
It has a target price of 1050p against a current price of 686p.