Investamate

Greggs - Buying the dip

Long
LSE:GRG   GREGGS PLC ORD 2P
BUY – GREGGS ( GRG )
Greggs plc is a United Kingdom-based bakery food on-the-go retailer. The Company's products and services consist of a range of fresh bakery goods, sandwiches and drinks in its shop.

Fundamentals
The success story of Greggs is quite remarkable with the shares rising significantly over a 5-year period. The baker recently delivered an ‘exceptional trading performance’, total sales were up 14.7% and like-for-like sales were up 10.5%. The introduction of vegan sausage rolls has been a massive success and no doubt brought new customers to stores across the country. The recent decline looks like a decent opportunity to buy.

Best Broker Target Price: 2300p ( UBS 28/08/2019)
Worst Broker Target Price: 1780p (Berenberg Bank 16/ 05 /2019)

Technical Analysis
The long-term chart of Greggs shows a spectacular uptrend. The recent dips from the highs of 2496p has been uncharacteristic and could present a fantastic opportunity to buy. Corrections are normal for share prices and following this recent bout of profit taking the shares now look more attractive. The close above the 10EMA on the 28th August 2019 could be a signal of bullish momentum returning. A move back to the highs to reassert the long-term trend is expected.

Recommendation: Buy
Buy between 2000-2100p
Stop: 1895p
Target: 2495p

Comments

lol this worked well
+1 Reply
Nice analysis, might look at this one myself
Reply
ledge! well played
Reply