Majestic Wine "buy," target price reduced

Analysts at Panmure Gordon maintain their "buy" rating on Majestic Wine Plc (MWJ), while reducing their estimates for the company. The target price has been reduced from 320p to 240p.

In a research note published this morning, the analysts mention that still wine prices have risen by about 10% this year. The trading conditions are challenging at present and Majestic Wine is now unlikely to post like-for-like sales growth this year, as compared to 3% expected previously, the analysts say. The EPS estimates for 2008 and 2009 have been reduced from 17.57p to 17.40p and from 19.49p to 18.13p, respectively.