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Prices & Quotes - UK Markets - Greggs (GRG)

Risk Warning The value of investments can fall as well as rise and any income from them is not guaranteed and you may get back less than you invested. Past performance is not a guide to future performance.

Share Price:
Down 2,522.00p
Change Today:
-8.00p
Market Cap:
2,561.78m
Sector:
Food & Drug Retailers

Berenberg ups rating on Greggs

By Abigail Townsend

Date: Tuesday 19 May 2020

LONDON (ShareCast) - (Sharecast News) - Berenberg has upgraded its rating on Greggs to 'buy' after the bakery chain started to tentatively reopen some of its stores.

The bank, which previously had a 'hold' rating on the stock, has also upped its price target, to 1,860.0p from 1,540.0p.

Greggs closed its 2,050 stores in late March because of the coronavirus outbreak. Following the government's decision to loosen some lockdown measures, however, it is now trialling reopening some sites. Reopened stores will carry a limited range only, and have both reduced opening hours and social distancing measures in place.

Greggs has said it hopes to have all its stores open again by July, should the trial prove successful.

Berenberg argued that prior to the Covid-19 pandemic, Greggs had delivered 18 months of "very impressive" like-for-like growth.

"Moreover, it had recently developed a strategy that, in our view, was capable to driving elevated levels of growth for several years to come.

"That plan has been halted for the time being, with most stores currently closed. However, we believe the structural growth of the food-to-go sector will eventually return, and feel Greggs is well placed to capitalised on that."

Berenberg said trading was likely to be subdued initially. "Even once every store is open, we believe trading will remain well below 2009 levels for some time, due to a substantial year-on-year decline in footfall caused by heightened levels of working from home and lower consumer confidence.

"As such, despite modestly reducing the length of the full closure period in our model, we have cut our 2020 revenue forecast by around 10%. However, we still think the trial reopening is a step in the right direction."

Berenberg also said that Greggs had addressed its lack of debt facilities, boosting its liquidity position by raising 150.0m for 11 months through the Bank of England's Covid Corporate Financing Facility.

As at 1500 BST, shares in Greggs were 2% at 1,668.84p.

Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

 

Greggs Market Data

Currency UK Pounds
Price 2,522.00p
Change Today -8.00p
52 Week High 2,618.00p
52 Week Low 1,119.00p
Volume 117,133
Shares Issued 101.58m
Market Cap 2,561.78m

Performance Indicators

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What The Brokers Say

Strong Buy 6
Buy 0
Neutral 2
Sell 0
Strong Sell 0
Total 8
strong_buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Greggs Dividends

  Latest Previous
  Special Interim
Ex-Div 05-Sep-19 05-Sep-19
Paid 03-Oct-19 03-Oct-19
Amount 35.00p 11.90p

Trades for 22-Jun-2021

Time Volume / Share Price
14:38 0 @ 2,523.00p
14:38 59 @ 2,522.00p
14:38 14 @ 2,522.00p
14:38 30 @ 2,522.00p
14:38 12 @ 2,523.00p

Greggs Key Personnel

Finance Director Richard Hutton
CEO Roger Whiteside
Chair Ian Durant