Greggs‘ (LSE: GRG) shares have moved higher recently. One key driver has been the company’s Q3 trading update, posted on 30 September. Can the shares continue to rise from here? Let’s take a look at the latest share price forecasts to see what analysts think.
A solid Q3
Before looking at analysts’ price targets, it’s worth briefly covering the Q3 trading update, because it showed an improvement in trading conditions.
For the 13 weeks to 26 September, Greggs’ total sales were up 7.7% year on year while company-managed shop like-for-like (LFL) sales were up 3.4%. Meanwhile, for the 39 weeks to 26 September, total sales lifted 7.4% while company-managed shop LFL sales rose 2.6%.
In the update, the company said that the improved trading reflected the success of continued menu innovation along with more settled weather. It added that as a result of the improved trading performance in recent months and continued strong cost control, it expects a “modestly improved” outcome for 2026.
In terms of store openings, it expects around 100-110 net new shops in 2026, plus 12 ‘Greggs Express’ convenience retailing installations. So it continues to expand quite rapidly.
Analysts have raised their price targets
Overall, it was a solid trading update. And it led to price target increases from three different firms in the City. Barclays raised its price target to 2,300p from 2,185p, about 13% above the current share price.
Berenberg, meanwhile, raised its forecast 2,300p from 2,200p. So it also sees potential gains of 13%. Deutsche Bank also raised its target price to 1,420p from 1,330p, although its new target is about 30% below the current share price.
Are the shares worth a look today?
Are Greggs’ shares worth considering for an ISA or Self-Invested Personal Pension (SIPP) in light of the Q3 trading update and new price targets? Possibly.
The company has posted back-to-back decent updates now, so operational performance is clearly improving. And after trading near 1,500p for almost a year, the share price appears to be in the process of beginning a new upward trend at the moment.
That said, the valuation looks relatively full, to my mind. Currently, the shares are trading on a forward-looking price-to-earnings (P/E) ratio of about 16, so I don’t see a lot of value on offer at present.
And there are still risks around consumer spending and the effects of GLP-1 weight-loss drugs. It’s also worth noting that short interest here remains high, signalling that sophisticated investors are betting against the shares so they clearly see risks that could hurt the share price.
Personally, I won’t be buying the shares for my own portfolio. While they could do well from here, I see better opportunities in the market at the moment…
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Edward Sheldon does not hold any positions in the companies mentioned.
This story originally appeared on Motley Fool
