Shares in Jurys Doyle dropped by nearly 6 per cent yesterday after brokers downgraded forecasts for the company on foot of tough trading conditions at its four- and five-star hotels.
The stock closed 40 cents lower at €6.55, although dealers said volume was relatively light with just 140,000 shares changing hands.
Davy, Goodbody, Merrion and NCB all downgraded the stock, citing uncertainty over the outlook for corporate spending - an important part of Jurys business.
Brokers' earnings per share (EPS) forecasts for the eight months to the end of December have been cut by between 8 and 12 per cent and range from NCB's 48.6 cents to Goodbody's forecast of 48.9 cents.
Analysts have also reduced next year's EPS forecasts by between 8 and 10 per cent. Goodbody said falling stock markets, the threat of military action in the Persian Gulf, and general political and economic uncertainty had hit confidence.
"Combined, these factors are likely to negatively impact Jurys corporate conference and incentive business in both Dublin and London," said the broker, which is downgrading the stock to "hold" and lowering its price target to €7.46.
However, NCB and Merrion retained their "buy" ratings on the stock. NCB cited strong management and the group's defensive qualities, particularly its strong inns product.
"In that we continue to believe that the group's inn brand remains one of the few brands capable of producing growth in the current market environment, we see no reason to change our buy recommendation," NCB analyst Mr Shane Matthews said.
