Broker snap: Customers return to Mecca at Rank

29th Jul 2010 12:54

KBC Peel Hunt saluted Rank Group's solid interims and expects the stock to continue to outperform."Grosvenor continues to be the star of the show, but Mecca has also shown its first growth in customer visits for a decade. With debt down to £133m, the group also has the balance sheet to increase investment in core areas," suggests KBC analyst Nick Batram.The broker has nudged up its forecast for full year profit before tax to £50m from its previous estimate of £48.4m. KBC believes that Rank looks an attractive investment in an uncertain market and has upgraded the stock from "hold" to "buy"."Grosvenor remains the jewel in the crown and future growth will come from further G casino conversions and the 12 non-operating licences. Mecca is slowly turning around, but customer visits have stabilised and the Full House concept continues to be refined," Batram says.