Deutsche Bank hikes target price on JD Wetherspoon

Analysts at Deutsche Bank hiked their target price on pub chain JD Wetherspoon from 640.0p to 750.0p on Wednesday, stating demand had been "reset".

Deutsche Bank highlighted that Wetherspoon shares were up roughly 52% year-to-date, versus the UK midcap index which was down approximately 2%.

"Markets cheered the H123 results (out Friday last week), with the shares up circa 16% from Thursday's close," said Deutsche Bank.

The German bank said the reason for this was the strength in like-for-like sales growth in the first half, as well as continued momentum into the second.

"Given the run-up in share prices, is the potential for further outperformance negligible?," mulled DB, which also reiterated its 'buy' rating on the stock.

Reporting by Iain Gilbert at Sharecast.com