Fuller, Smith & Turner (LSE:FSTA) has the chance to deliver double-digit annual earnings-per-share growth, according to analysts at Shore Capital, who reckon this potential has yet to be fully priced into market estimates.
The stockbroker repeated a Buy rating and a 1,100p 'two-year' price target on the pub stock that currently trades at 680p.
Shore Cap's note, which follows somewhat upbeat numbers earlier this month, sees the investment case in three layers: like-for-like sales growth as the near-term driver, further margin expansion as the medium-term opportunity, and capital deployment, including the newly announced share buyback, as the longer-term value creator
The London-focused pub and hospitality group's interim results aren't due until November and there's a lot of trading between now and then, not least during the coming weeks during the FIFA World Cup.
In the meantime, Shore Cap has lifted its FY27 EPS forecast by approximately 6%, implying around 11% year-on-year growth.
The broker noted that Fuller's recent FY26 results beat the broker's prior projections, with EBITDA of £76.6m coming in ahead of Shore's £73.3m forecast and underlying EPS rising 38% to 47.2p.
Shore Cap, at the same time, also sees scope for further forecast upgrades beyond FY27.
