LONDON (ShareCast) - Broker KBC Peel Hunt has reiterated its "buy" recommendation for five-a-side football pitch operator Goals Soccer Centres (LSE: GOAL.L - news)
after Friday morning's trading update, saying the company's trading and openings programme are on course to meet the broker's expectations.
"The pipeline of over 40 sites continues to strengthen as a result of the brand's increasing recognition, and the path to opening has improved as a result of reduced workflow through local authority planning departments. Spontaneous enquiries are increasing as public spending cost constraints reduce the range of alternative local authority projects and we believe this trend is likely to continue," KBC analyst Paul Hickman said.
"We continue to forecast pre-tax profit growth of 16% to £9.5m this year. Allowing for the placing, forecast earnings grow 9% to 13.9p. We expect similar growth in 2010E to £11.0m and 15.2p respectively. From 2011, when the additional sites trade for a full year, we expect profit and earnings growth to accelerate to 20%," the broker said.
KBC Peel Hunt has left its price target unchanged at 230p.
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