| CATEGORY: BROKER RECOMMENDATIONS SECTOR: TRAVEL & LEISURE |
Broker snap: Goldman lowers Wetherspoon, Enterprise |
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Fri 22 Feb 2008
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LONDON (SHARECAST) - Goldman Sachs has lowered its ratings on pub groups JD Wetherspoon and Enterprise Inns to ‘sell’ from neutral’, citing the effects of the English smoking ban and lower consumer spending.
It said the ban and lower spending had reduced pub profits over the past year and were likely to lead to lower rental income in the coming year.
The broker also slashed its price target on Wetherspoon to 275p from 700p and on Enterprise Inns, which leases premises to tenants, to 375p from 830p.
Goldman added that, based on other countries’ experiences, the impact of the smoking ban should lessen on the anniversary of the introduction of the smoking ban in July.
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