JD Wetherspoon PLC’s (LON:JDW) plans to invest in the expansion and upgrading of its pub estate could help the company create “significant equity value”, according to analysts at Peel Hunt.
In a note on Thursday, the broker upgraded the publican to ‘hold’ from ‘reduce’ and raised their target price to 1,350p from 1,150p, saying the company had now taken a “more constructive approach” after criticising the UK government for its lockdown policy.
READ: Wetherspoon's to create 2,000 new jobs through pub expansion strategy
“The company now plans to invest almost £900mln over c.10 years, creating 22,000 new jobs, opening 15 new pubs and enlarging 50 others annually, conditional on “no further lockdowns or the constant changing of rules”, Peel Hunt said.
“This (and future price increases) could create significant equity value”, they added.
Shares in Wetherspoon rose 0.5% to 1,406.5p in late-morning trading.