Investment bank predicts difficult 2008
A investment bank has said that the smoking ban and deep supermarket discounting has shaken its confidence in the sector.
JP Morgan mentioned several companies in a note to investors and have lowered like for like sales projections for 2008 across the industry.
Saturation in the eating out market was also cited as a reason for a lack of confidence in the trade.
The company previously thought that the sales would be flat next year as a direct consequence of the smoking ban but have now lowered predictions for profits in the tenanted sector and sales for managed.
The bank favoured Punch Tavern, up 1p to 771.5p, despite cutting its target from £14.50 to £10.70. Mitchells & Butlers rating has been cut by 1.5p to 441p and Marston’s has gone down 12.75p to 307p.
To Comment: Login or Register