Enterprise Inns does not need conversion to a REIT to achieve heady returns for shareholders, according to Deutsche Bank.
The pub group’s house broker reiterated its “buy” rating and 790p target price. It said its price target was not dependent on REIT conversion but upon the trading and cash generation of the pub estate.
Enterprise said last week it would take some time before there was enough clarity in the market to see whether REIT status would benefit pub operators.
There were also rumours of a bid approach but it emerged this was caused by some investors confusing the company with another business called Enterprise which said yesterday it had rejected an approach. Enterprise Inns cannot be in bid talks because it recently bought shares for cancellation.
