Three UK pubs groups have seen their target prices raised by Deutsche Bank. The bank believes that the leased pubs sector offers strong defensive growth.
Deutsche is raising its targets for Enterprise Inns to 1,075 pence a share from 1,000p, Punch Taverns to 470p from 360p, and Greene King to 975p from 930p.
The bank issued a note saying that approaching trade results in the sector should show that leased/tenanted pubs are in a strong position. “The stability and safety of this class of pubs should shine through in the figures,” the note said. “These groups or their non-managed pub divisions have been the most robust part of the pub sector for some time. Our analysis suggests that the market is adopting a far too bearish approach to valuation.”
