Berenberg lowers target price on Greggs

Analysts at Berenberg lowered their target price on bakery chain Greggs from 3,600.0p to 3,000.0p on Friday despite earnings estimates holding firm.

Berenberg noted that Greggs shares were down by 45% year-to-date, despite earnings estimates holding firm, leaving them trading at their lowest multiple for many years.

"We see the prospect of upgrades over the medium term, as Greggs delivers on key milestones on its path to reach its target of doubling sales by 2026 (from 2021) – see On course to double sales by 2026, dated 3 November 2021 – which should also contribute towards a re-rating over time," said Berenberg.

"We reiterate our 'buy' rating, although our price target falls slightly in line with peer multiples."

Reporting by Iain Gilbert at Sharecast.com