Broker snap: Top of sector trading at Greene King

31st Jan 2011 11:44

Financial services firm Matrix says that Greene King's trading update released on Monday was "very good" and represents the best performance in the pub groups sector for the recent 'update' season. Although not explicitly disclosed in the statement, the broker calculates that like-for-likes in the group's managed pub estate were about 4.6% higher over the past eight weeks, compared with an increase of 3.7% for the first 30 weeks (reported at its interims), "so clearly the company has seen a nice acceleration in performance," says analyst John Beaumont.The broker also highlights Greene King's acquisition of Cloverleaf - a pub company with 12 very large pubs in the North and the Midlands - which should give it exposure to the growing carvery sector and good new build skills."We can envisage some small upgrade to profit before tax estimates for 2011 and maybe some modest increases for 2012," says Beaumont. A 'buy' is retained while changes are being made to estimates. The target price is under review.