In a report released today, Jamie Rollo from Morgan Stanley maintained a Hold rating on J D Wetherspoon (JDW – Research Report), with a price target of p740.00.
Jamie Rollo has given his Hold rating due to a combination of factors impacting J D Wetherspoon’s financial performance. The company reported a slight miss in its H1 profits, with total sales aligning closely with expectations but facing challenges from increased labor and utility costs. These costs have been a significant headwind, affecting the company’s EBIT and PBT, which were lower than anticipated.
Despite these challenges, current trading remains strong, with like-for-like sales growth outpacing the market. However, the company’s forecast for the fiscal year suggests continued pressure on margins due to ongoing cost increases. Additionally, the outlook for free cash flow conversion is less optimistic, which could negatively impact the share price. These mixed signals contribute to the Hold rating, as the company shows resilience in sales but faces financial pressures that may limit upside potential.
According to TipRanks, Rollo is ranked #7178 out of 9390 analysts.