JD Wetherspoon: Solid Trading Momentum and Attractive Valuation Support Buy Rating Despite Cost Pressures

In a report released today, James Wheatcroft from Jefferies assigned a Buy rating on J D Wetherspoon, with a price target of p840.00.

James Wheatcroft has given his Buy rating due to a combination of factors including resilient top-line performance and an attractive valuation backdrop. Despite trimming his FY26 forecasts to reflect persistent cost inflation and some pressure on profitability, he views the underlying trading momentum as solid, with revenue growth demonstrating the brand’s continued customer appeal.

He also appears to believe that the current share price underestimates the company’s medium‑term earnings power once cost pressures ease. In his view, JD Wetherspoon’s scale, strong market position and ability to drive volumes position it well to benefit from a recovery in consumer spending, supporting a favourable risk‑reward profile for long‑term investors.