Broker snap: UBS swears off pub groups

23rd Sep 2009 10:49

Swiss bank UBS has called time on a gaggle of big pub groups, claiming the share prices have risen too far on a heady cocktail of improving consumer sentiment, England's qualification for the World Cup and changes to the rules on pub gaming machine stakes and prizes.UBS reckons the share prices of Enterprise Inns, Greene King, Marstons and Mitchells & Butlers are set for that morning after feeling unless the economy's recovery is 'v-shaped'.In the post-smoking ban environment UBS thinks that even if the economy does stage a full recovery, the margins on leased and tenanted pub will probably not return to historic highs.Cut price operator JD Wetherspoon is UBS's preferred pick in the sector but even these shares only rate a 'hold' rating.