Greene King and Marston's have taken the best constructive action to lower debt and revitalise their estates during the downturn, according to city analyst Charles Stanley.
The analyst says that due to these actions both are best placed to outperform the market and rates them as a Buy.
However, Charles Stanley downgraded Punch Taverns to a Sell, saying that it “appears to have made the lease inroads into addressing debt levels”.
In a note this morning, James Dawson of Charles Stanley said that the regional bias of London-based rivals, Fuller's and Young's, “should prove beneficial, although the current market valuation suggests some of their upside is already recognised”.
Both Enterprise Inns and Mitchells & Butlers are upgraded to a Buy for “their turnaround potential”, with the latter restructuring its estate and the firmer a speculative play on the assignment market improving.
The analyst downgrades JD Wetherspoon to Hold, adding that “margin pressure suggests to us they are as competitive as possible at present”.
