Jefferies analyst Andrew Wade has maintained their bullish stance on GRG stock, giving a Buy rating on March 24.
Andrew Wade has given his Buy rating due to a combination of factors influencing Greggs plc. The company has experienced slower trading, which management attributes to broader macroeconomic conditions rather than internal issues. This perspective is supported by external data and competitor trends, suggesting that Greggs has maintained its market share despite the challenging environment. Management is optimistic about an acceleration in like-for-like sales as the year progresses, driven by weaker comparatives.
Another factor contributing to the Buy rating is the strategic decision regarding margin dilution expected in FY26-27. Greggs is undergoing a significant capital investment program, which is anticipated to impact margins due to increased depreciation and early-stage underutilization of new facilities. However, management believes that these pressures are temporary and that avoiding price increases is the correct approach. This strategic foresight and commitment to long-term growth underpin Wade’s positive outlook on the stock.
In another report released on March 24, RBC Capital also maintained a Buy rating on the stock with a p2,520.00 price target.