Analyst James Wheatcroft from Jefferies maintained a Buy rating on J D Wetherspoon and keeping the price target at p825.00.
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James Wheatcroft has given his Buy rating due to a combination of factors including JD Wetherspoon’s financial performance and market positioning. The company’s earnings before interest and taxes (EBIT) have exceeded expectations by 5%, indicating robust operational efficiency. Despite a slight slowdown in like-for-like sales, JD Wetherspoon continues to outperform the broader pub market, showcasing its resilience and competitive edge.
Furthermore, the stock’s valuation appears attractive, trading at a lower multiple compared to its historical range. With an enterprise value to EBITDA ratio of 5.5x and a free cash flow yield of 8.2% for the fiscal year 2026, the shares seem to be undervalued, especially when considering the pre-COVID valuation range of 9x-11x EV/EBITDA. These factors combined suggest a favorable investment opportunity, justifying the Buy rating.
According to TipRanks, Wheatcroft is a 4-star analyst with an average return of 9.0% and a 51.70% success rate. Wheatcroft covers the Consumer Cyclical sector, focusing on stocks such as Flutter Entertainment PLC, Entain plc, and The Gym.