Brokers set to boost forecasts for Greggs after positive update

15th Dec 2014 09:06

Liberum Capital and Shore Capital are reviewing their forecasts for Greggs after the bakery chain forecast annual profits above market hopes.Greggs said on Monday that full-year profit in the 53 weeks to 3 January should be ahead of analysts' expectations after it benefited from milder weather, shop refits and new products in the 24 weeks to 13 December.Liberum, which has a 'hold' on the stock with a 600p target price, had expected annual pre-tax profit of £53.8m against a consensus of between £52.1m and £55m.It said it was putting its forecasts under review, adding: "We would expect consensus to increase by up to 5% today."Meanwhile, Shore Capital, which has a 'buy' on Greggs with a 657p target price, said it also expected to upgrade its expectations.The broker's Clive Black said: "We will liaise with the company as to the size of the upgrade to our forecasts, noting that management states that it still has to trade the last few weeks of the year, where inclement weather can still play a role. However, momentum appears good."Shares in Greggs rose 29.5p or 4.5% to 686p at 10:06 in London.