Greggs: Competitive Price Pressure Justifies Balanced Hold Recommendation

In a report released today, Andrew Wade from Jefferies maintained a Hold rating on Greggs plc, with a price target of p1,610.00.

Andrew Wade has given his Hold rating due to a combination of factors related to Greggs’ pricing and competitive standing. Greggs has implemented price increases that are broadly in line with the wider market, successfully passing through inflation without materially overreaching competitors, and it continues to sit between cheaper supermarket options and more premium chains on headline price levels.

However, rivals such as Tesco and M&S have deliberately kept sandwich prices flat over the past year and limited rises over two years, thereby improving their value appeal relative to Greggs. This sharpening of competitors’ price positions tightens the competitive landscape, suggesting more constrained scope for Greggs to drive outperformance, and leading Wade to a more balanced, Hold stance on the shares rather than a more decisive positive or negative call.

Wade covers the Consumer Cyclical sector, focusing on stocks such as Greggs plc, THG, and Pets at Home. According to TipRanks, Wade has an average return of 3.2% and a 51.50% success rate on recommended stocks.