Broker snap: Charles Stanley downgrades Greene King

2nd Dec 2011 10:43

Charles Stanley downgraded its rating for Greene King yesterday despite the firm's interim results matching market expectations.The broker notes that a 5.6% year-on-year rise in normalised pre-tax profit (for the 24 weeks to 16 October) to £77.2m was in line with forecasts with all three divisions reporting progress in the period. Furthermore, the Old Speckled Hen brewer and pub chain has seen a confident start to the second half and Christmas bookings are 12% ahead of last year. Charles Stanley thinks this is down to consumers opting for "better value festive experiences".However, analyst James Dawson has cut its recommendation for the firm saying "whilst there is clearly further upside to this business from here we favour the higher yielding alternative of Marston's."Shares were extending gains on yesterday's results, trading 0.73% higher at 469.1p by 10:43 on Friday.BC