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Redburn-Atlantic downgrades Greggs stock to Neutral on weaker outlook

Published 22/07/2025, 10:58
Redburn-Atlantic downgrades Greggs stock to Neutral on weaker outlook
GRG
0.53%

Investing.com - Redburn-Atlantic downgraded Greggs Plc. (LON:GRG) (OTC:GGGSF) from Buy to Neutral on Tuesday, while significantly reducing its price target to GBP16.51 from GBP24.40.

The downgrade reflects what the research firm describes as a "weaker, less certain outlook" for the British bakery chain, noting that like-for-like sales momentum has faded for the company.

Redburn-Atlantic also cited concerns about evening and delivery channels diluting margins, while a "sizeable supply-chain build-out" is deferring free cash flow inflection.

The firm cut its earnings per share estimates for Greggs by 7% for 2026 and 10% for 2027, positioning its forecast approximately 3% below consensus expectations.

Redburn-Atlantic now projects a 2025-2028 earnings per share compound annual growth rate of just 4% for Greggs, with most of that growth expected to materialize in 2028.

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