Broker snap: Panmure ups target for Fuller, Smith & Turner

7th Jun 2013 11:44

Panmure Gordon has kept a 'hold' rating for pubs and brewery group Fuller, Smith & Turner but has lifted its target price from 755p to 834p on the back of a strong update on current trading on Friday.The company's results for the year ended March 30th were broadly in line with expectations, Panmure said, revenues up 7.0% at £271.5m and adjusted profit before tax (PBT) up 5.0% at £31.7m.However, the 10% increase in the final dividend to 8.35p per share was "slightly ahead of our expectations", the broker said.Meanwhile, Panmure said that current trading is strong as expected with managed pub like-for-like (LFL) sales in the nine weeks to June 1st up 7.0% and tenanted pub LFL profits 1.0% higher. Beer sales are down 5.0% though the broker said that this was against a strong comparative.For the year ending March 2014, Panmure said that consensus forecasts for PBT of £33.5m (Panmure Gordon: £33.6m) shouldn't change on the back of Friday's statement."Forecast growth in earnings should be underpinned by strong current trading, the full-year impact of acquisitions made over FY 2012-13A and the acquisition of [cider maker] Cornish Orchards."However, with the stock trading at 20 times 2013 earnings and just 5-6% earnings growth expected this year, the broker has reiterated its 'hold' recommendation.The stock was up 2.27% at 900p by 12:35.