Broker snap: Marston's well-placed to recover

24th Jan 2011 13:15

Pub group and brewer Marston's share price has taken a hit in the last couple of months making what Peel Hunt described as the best operator in the modern pub industry an even bigger bargain.Snow disruption, an "overwhelming exposure" to places with average public sector employment, and the north/south divide (the claim that the consumer economy will become increasing two-state) are thought to have had an adverse affect on sentiment towards the stock recently. However, Peel Hunt thinks that these fears have been overblown, especially the north/south divide where, in the broker's view, "it is better the trade in a good location in a weak geography than the other way round.""Marston's in recent years has thrown off the vestiges of the old regional brewery model to become an effective contemporary retailer with a strong emphasis on value, backed up by interesting beer brands that give character to its pubs," says the broker.Peel Hunt recommends a 'buy', along with a target price of 124p.