The recent good weather is likely to benefit Marston’s at its Q3 interim management statement on Thursday, according to leading sector analyst Simon French.
French, of Panmure Gordon, said: “We expect a strong trading update reflecting relatively weak comparatives and exceptional weather benefitting the group’s investment in outdoor space. We therefore expect management to reiterate confidence in meeting consensus expectations of £93.5m PBT (12.9p EPS). The stock trades on a CY 2014E adjusted EV/EBITDAR of 9.1x compared to the peer group average of 10.1x.
“We reiterate our Hold recommendation and 135p Target Price.”
French said: “We forecast £93.7m PBT (12.8p EPS) in FY 2013E increasing to £99.0m PBT (13.4p EPS) in FY 2014E.”
He added: “For the 10 weeks to 20 July we forecast c7% LFL sales growth in Destination and Premium pubs.
