Jefferies analyst James Wheatcroft maintained a Buy rating on J D Wetherspoon (JDW – Research Report) today and set a price target of p1,000.00.
James Wheatcroft has given his Buy rating due to a combination of factors relating to J D Wetherspoon’s financial performance and market positioning. His analysis indicates that the company’s final results are consistent with revenue expectations and slightly exceed earnings before interest and taxes (EBIT) projections. Additionally, there’s an observed positive trend in like-for-like (LFL) sales growth, which is expected to continue. Despite a forecasted slowdown in LFL sales momentum due to reduced inflationary cost pressures, this is also anticipated to lead to improved operating margins over time. Furthermore, the reinstatement of the dividend signals a robust financial recovery and reassures investors of the company’s renewed strength.
Wheatcroft’s optimism also stems from J D Wetherspoon’s strategic advantages in the market. He notes the company’s competitive pricing and strategic investments in well-situated properties as key drivers for gaining market share, especially as consumers look for more cost-effective options. The valuation of the company’s stock also appears attractive; it is deemed undemanding when compared to historical levels. With the current valuation suggesting a significant discount on projected EBITDA, Wheatcroft sees this as an opportunity for investors, given the stock’s favorable enterprise value to EBITDA (EV/EBITDA) ratio and free cash flow (FCF) yield forecasts for FY25.
According to TipRanks, Wheatcroft is ranked #1552 out of 9080 analysts.
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J D Wetherspoon (JDW) Company Description:
Wetherspoon (J D) PLC owns and operates close to 1,000 pubs throughout the United Kingdom and Ireland. The pubs generate nearly all the company’s total revenue, but it also has a very small hotel business. Its locations are in or near town centres or in suburban locations. It also has pubs in airports and railway stations. The company leases roughly half of its locations and owns the other half. Most of its pubs operate under individual brand names. Brands with multiple locations include Wetherspoon’s and Moon Under Water.
