A leading analyst has said that a long convalescence is required for Enterprise Inns, after the pub company’s chief executive Ted Tuppen said in a presentation that group was out of intensive care and on the road to recovery. In the presentation to analysts, Tuppen pointed out that trading was close to being stabilised in Enterprise’s core estate, while its accelerated disposal and sale-and-lease programme was complete and the refinancing of the £419m bank revolver due in December 2013 looked achievable. He also highlighted that the group’s estate valuation is stable and not an issue from a covenant perspective. Loan-to value is c65% and the £75m per annum of amortisation is not a problem. However, Nigel Parson at Evolution, in a note entitled "out of intensive care, long convalescence required" said that the viewpoint that the group was on the road to recovery was not reflected in the share price, which has virtually halved year-to-date He said: “Enterprise is a stock for deep value investors with a tolerance for share price volatility (Equity = 10% of EV) but the potential rewards are big enough to make this a viable investment proposition. “At yesterday’s close the stock traded on a PE of 2.8x to FY11E to FY12 and EV/EBITDAs of 9.3x/8.9x for the same periods. The equity now represents a geared recovery option, the catalyst is not obvious but that detail should not deter value investors.”