Broker snap: Fuller's worth buying after recent dip

21st Jul 2009 12:58

Broker Charles Stanley has developed a taste for Fuller's the real ale brewer and pub group, but that has more to do with recent share price weakness than Tuesday's trading update.The broker has retained its price target at 575p but given the shares were trading almost a pound below that level before Tuesday's "robust trading statement" it believes the shares are worth buying at the current level."The group's management has confirmed that it will deliver results at least in line with expectations for FY10, a confident assertion given that only Q1 has been completed," the broker's analyst James Dawson suggests.Dawson thinks the company may be on to a winner with its Organic Honeydew beer, which is the tipple showing the fastest growth among Fuller's brand portfolio. Dawson believes its popularity is because the brand is "designed to target the lager rather than ale market, hence the timing of the current significant marketing campaign."