Broker snap: Whitbread update impresses Panmure

14th Dec 2009 11:58

Panmure Gordon has lifted its target price on Whitbread to 1675p from 1470p after a bullish trading update from the hotel and coffee shop owner.Whitbread said it expects to deliver results ahead of the top end of market expectations after seeing a 6.7% rise in third quarter sales at Costa Coffee, a 2.3% rise at pub restaurants and the decline at Premier Inn easing to 3.1% against a 7.1% decline in the second quarter.Panmure has raised its pre-tax profit forecast for Whitbread by 11% to £233.7m.It notes that the company trades at 14.3 times expected 2010 earnings - an unjustifiable discount to rival InterContinental Hotels in Panmure's views