Analyst: Greggs faces resistance over weight loss drug.

Jefferies analysts Andrew Wade and Grace Gilberg said in a report that the UK bakery chain Greggs is facing structural resistance due to the emergence of weight loss medications. These analysts stated that the rapid proliferation of GLP-1 drugs such as Novo Nordisk is causing a decline in comparable sales and profit margins assumptions, with profit growth expectations becoming more limited. The analysts said, "Although the typical GLP-1 drug user group may only partially overlap with Greggs' customer base, those likely affected are consumers with higher body mass index and higher frequency of consumption - who happen to be Greggs' most valuable customers." Jefferies downgraded the stock rating from buy to hold and lowered its target price from 2,500 pence to 1,610 pence. The stock price fell by 4.5% to 1,604 pence, down 23% over the past 12 months.