Greggs upgraded by Berenberg

10th August 2017, 15:22

Berenberg has upgraded its recommendation on high street baker Greggs [LON:GRG] to buy from hold saying that it is increasingly confident that the sausage roll to steak bake maker can continue to achieve underlying growth above the market level and believing there is a clear opportunity for the company to expand its estate.

The bank added: "While we acknowledge that the consumer environment is uncertain at present and the company is facing some cost pressures, we think it is well positioned to deal with these challenges.

"On the back of the strong H1 performance, we increase our EPS estimates by 0.2-2.1% over the forecast period."

Analysts have also upped their price target on the stock to 1,300 pence per share (from 1,020 pence).

At 3:22pm: [LON:GRG] Greggs PLC share price was +55p at 1172p