Broker snap: Evolution remains a buyer of Marston's

30th Nov 2011 12:15

Evolution Securities has reiterated its buy recommendation on pubs owner and ale brewer Marston's, saying that the group delivered exactly as it promised in its full-year results.The firm served up a 4.8% increase in annual revenue and saw a robust start to the new financial year with a 3% increase in like-for-like sales at its managed pubs in the last eight weeks. "The 'self-help' agenda is now yielding results and this should translate through to rising cashflow and to fund a progressive dividend for income-hungry investors," said analyst Nigel Parson.Evolution Securities keeps its 140p target.However, Peel Hunt kept its hold rating on the stock after making no changed to its forecasts (which are around 4% below consensus). Nevertheless, the broker said that Marston's is now well prepared for what it thinks will be a tougher 2012, in which it forecasts "only low earnings growth against the 11% just posted". A 107p target price is kept.Shares were performing well on Wednesday, up 5.88% to 99p by 12:15.BC