Broker snap: Wetherspoon admired despite property risk

27th Apr 2010 08:44

A rising property market may be good news for the overall economy but it is a 'risk' for the budget pub chain JD Wetherspoon, according to the broker UBS.However, the stock remains UBS's top pick in the pub sector and the broker raises its target price on Wetherspoon to 590p from 530p.'Given the risk of the property market recovering and of new entrants such as Mitchells & Butlers for leased pubs, we believe Wetherspoon will open 50 new pubs, this fiscal year and 55 next,' the broker says.'Our five year forecast of 200 new sites remains below the company's 250 target.'Nevertheless, this is enough to prompt UBS to raise its target price on the stock, which is in line with the shares' historic average.