The proposed smoking ban in England will lead to an oversupply in the restaurant market according to Panmure Gordon. In a research note Douglas Jack, analyst at Panmure, said: "4,000 late-night bars are reliant on selling food. These and up to 5,500 other (non-late) high street bars will have to ban smoking and reposition towards the 21,000-strong restaurant market." The broker recommended buying Restaurant Group, with its minimal town centre exposure and a 6.4x EV/Ebitda rating, before considering Gondola Holdings' "weaker prospects" and proposed c10x rating. The group reduced its price target on Wolverhampton & Dudley Breweries from 1300p to 1250p and Mitchells & Butlers, which it believes to be vulnerable to the smoking ban, from 400p to 375p. In addition to Restaurant Group, Greene King and Enterprise Inns were named as core ‘Buys’ and JD Wetherspoon as a ‘Sell’. Jack said that on peak trading nights, customers of JD Wetherspoon and high street bars reliant on food may move on to nightclubs early, where they should be able to smoke. This would, in turn, benefit Luminar, which the company named, along with Greene King, Restaurant Group and Regent Inns, as the most undervalued licensed retailers, offering double-digit free cash flow yields. Jack said: "We believe that food-led residential pubs, premium (style) bars and off-high street restaurants have the best prospects. We would limit exposure to wet-led boozers, chameleon bars, mainstream discount pubs/bars and small nightclubs, most of which are privately owned."