Greggs Share Price Can Rebound

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Greggs Share Price Can Rebound

Greggs Share Price Can Stage A Rebound

Greggs' share price is at 5 year lows, and it also makes one wonder if it is the right time to buy it. On the surface, it is clear that Greggs is trading at a very low valuation, and an improvement in financials can easily propel the share prices higher.

Since August 2025, the market cap of Greggs has collapsed by 50%. The key reason behind this was rising costs and a slowdown in growth.

Greggs Enjoys Improved Cash Flow

In fact, the data shows that Greggs is one of the heavily shorted stocks on the LSE! However, the financial data shows that Greggs might be staging a rebound very soon.

For example, the last results showed weaker earnings but an increase in sales growth. Also, the management commented on how Greggs has started 2026 on a strong note as compared to the last 1 months.

Also, the capital expenditures of Greggs are expected to decline to around 200 million in 2026. In 2027, they will fall even lower towards 150 million to 170 million.

The decline in Greggs' capital expenditures means the company will have more cash flow in 2026. At the same time, Greggs continues with its expansion and plans to have 3000 active locations in the UK.

However, the only downside is the profit margins, as the operating profitability in 2025 declined from 9.7% to 8.7%. According to analysts, it was mainly due to high energy costs, taxes, and a number of other reasons.

All of these reasons are still present in 2026, but the Greggs management is taking several steps to offset the impact.

If we talk about the good things, the top of the list is improvement in sales and a decline in the capex. On top of that, the margin stabilization is also a big achievement for Greggs.

Based on all of this, UBS, Barclays, and JO Morgan beleive that the downtrend in Greggs' share price is coming to an end. The average Greggs share price target for 12-months is set at 1910p to 2200p, which means an upside of almost 35%.

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