Greggs' (GRG) Sell Rating Reaffirmed at Deutsche Bank Aktiengesellschaft

Key Points

• Deutsche Bank reaffirmed its “sell” rating on Greggs and set a GBX 1,330 price target, implying 33.9% downside from the stock’s GBX 2,012 trading price.
• Analyst sentiment remains mixed: JPMorgan and Berenberg raised their targets to GBX 2,210 and GBX 2,200, respectively, while the overall consensus is “hold” with a GBX 1,862.86 target.
• Greggs reported quarterly EPS of GBX 55.10, a 5.68% net margin and 20.47% return on equity, while its shares traded near their 52-week high amid resilient food-to-go demand.

Greggs (LON:GRG - Get Free Report)'s stock had its "sell" rating restated by investment analysts at Deutsche Bank Aktiengesellschaft in a research report issued on Thursday,Digital Look reports. They presently have a GBX 1,330 price objective on the stock. Deutsche Bank Aktiengesellschaft's price objective points to a potential downside of 33.90% from the stock's current price.

Several other equities research analysts have also commented on GRG. JPMorgan Chase & Co. upped their price objective on Greggs from GBX 2,050 to GBX 2,210 and gave the stock an "outperform" rating in a research note on Thursday. Berenberg Bank lifted their target price on Greggs from GBX 2,090 to GBX 2,200 and gave the company a "buy" rating in a research report on Thursday. Shore Capital Group reissued a "hold" rating on shares of Greggs in a report on Tuesday, May 12th. Jefferies Financial Group restated a "hold" rating and issued a GBX 1,610 price target on shares of Greggs in a research report on Wednesday. Finally, UBS Group reaffirmed a "buy" rating and issued a GBX 2,200 price objective on shares of Greggs in a research note on Monday, May 11th. Four analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of GBX 1,862.86.

Greggs Stock Performance

GRG stock traded up GBX 33.39 during midday trading on Thursday, reaching GBX 2,012. 6,122,756 shares of the company's stock traded hands, compared to its average volume of 4,329,737. Greggs has a 52-week low of GBX 1,407.20 and a 52-week high of GBX 2,046. The stock has a market cap of £2.05 billion, a P/E ratio of 16.87, a PEG ratio of 3.39 and a beta of 1.15. The company has a current ratio of 0.56, a quick ratio of 0.88 and a debt-to-equity ratio of 75.94. The stock's 50-day moving average is GBX 1,641.42 and its 200 day moving average is GBX 1,620.23.

Greggs (LON:GRG - Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The company reported GBX 55.10 earnings per share for the quarter. Greggs had a net margin of 5.68% and a return on equity of 20.47%. As a group, analysts anticipate that Greggs will post 142.3763386 EPS for the current year.

Insider Activity

In other news, insider Richard Smothers acquired 1,615 shares of the firm's stock in a transaction dated Tuesday, May 19th. The shares were purchased at an average cost of GBX 17 per share, for a total transaction of £274.55. 0.62% of the stock is currently owned by company insiders.

Greggs News Summary

Here are the key news stories impacting Greggs this week:

• Positive Sentiment: First-half profit rose 20%, supported by growth in Greggs’ grocery business and resilient demand for its core food-to-go products. The results suggest the company’s value-focused strategy is attracting customers despite ongoing cost-of-living pressures. UK's Greggs first-half profit up 20% as grocery business grows
• Positive Sentiment: Greggs reported quarterly EPS of 55.10 pence, alongside a 5.68% net margin and 20.47% return on equity. The company also reported higher market share, reinforcing the view that its pricing and product strategy is delivering operational momentum. Greggs Reports Higher Profit and Market Share as Value Strategy Continues to Deliver
• Positive Sentiment: JPMorgan raised its Greggs price target to 2,210 pence from 2,050 pence and retained an “outperform” rating. Berenberg also increased its target to 2,200 pence from 2,090 pence and maintained a “buy” recommendation, providing additional analyst support. Broker target upgrades
• Positive Sentiment: Early international expansion is showing promise: Greggs is finding demand for its sausage rolls in Spain’s Canary Islands. Although still a small opportunity, the reception could support longer-term growth beyond the UK. UK's Greggs finds appetite for sausage rolls in the Canary Islands
• Negative Sentiment: Jefferies reaffirmed its “hold” rating with a 1,610-pence target, substantially below the current trading level. This signals that some analysts view the recent rally as having outpaced near-term fundamental value. Jefferies Greggs rating

About Greggs

Greggs is a leading UK food-on-the-go retailer with more than 2,700 shops nationwide and approximately 33,000 employees across the business. As a food-on-the-go retailer, Greggs specialises in daily fresh shop-made sandwiches, and savouries baked fresh in the shop ovens throughout the day. These are further complemented by popular products and ranges including freshly ground coffee, breakfast, confectionery and evening menu items. Greggs also offers a healthier options range which includes a selection of gluten-free, vegan-friendly and lower calorie products.

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