Leisure Sector Note
Anywhere to shelter in a recession?
Our universe of small-mid cap Leisure stocks have dropped between 13%-60% since August’21. With market sentiment towards consumer facing stocks at a low point, we assess downside EPS risk in a recession, screen for sales / EPS sensitivities and identify the well capitalised companies. At a sector level, given the macro outlook, we view Q4-22 and Q1-23 as critical to assessing how: (i) consumer discretionary spend is faring; and (ii) any evidence of cost inflation stability.
Stocks mentioned in the note include:
City Pub Group (CPC), Fulham Shore (FUL), Gym Group (GYM), Hollywood Bowl (BOWL), Loungers (LGRS), Marston’s (MARS), Restaurant Group (RTN) and Ten Entertainment (TEG)
Interested in receiving the full version of the Leisure Sector Note?
If you are a professional investor and would like to enquire about receiving the Financials Sector note, please get in touch by following the link below. Please note, MiFID II restrictions may apply.
Senior Research Analyst
Call 020 7496 3180
or email Sahill.Shan@singercm.com