Broker snap: Lack of catalyst at Marston's

17th Mar 2011 10:49

Credit Suisse raises forecasts at brewing and pubs group Marston's but remains cautious saying that there is a lack of near-term catalysts, given potential consumer headwinds.Estimates for 2011 remain unchanged but the 2012 and 2013 earnings forecasts are raised by 4% and 8%, respectively. "This reflects a positive impact from the managed new build development (where return on capital continues to exceed the company's 15% target), and a lower tax charge," says Credit Suisse.The group issued a "robust" trading update yesterday, according to the broker, reporting 3% managed like-for-like (LfL) sales growth in the last 7 weeks. "Tenanted LfL profits also turned positive for the first time since 2008, driven by the new retail agreements which continue to gain traction."The broker keeps a target price of 116p and 'neutral' rating, saying "Whilst trading momentum is solid, we prefer to stay cautious on UK consumer exposure."