Can Greggs Share Price Bounce Continue After Analyst Bull Call?

Greggs (LON: GRG) shares surged more than 5% on Friday after JPMorgan initiated coverage with an Overweight rating, offering a rare bright spot in what has otherwise been a difficult year for the bakery chain. 

While the shares are down around 1.3% so far on Monday, investors will be hoping Friday’s rally will continue into this week.

The stock remains down more than 41% in 2025 and is now trading just below a key resistance area around 1,730p, a level it has struggled to break in recent months.

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JPMorgan set a 2,110p price target, arguing that Greggs is a “structural winner” with “top-class” unit economics. 

The bank said its growth prospects remain intact despite the share price correction and broader pressure on UK consumer-facing stocks. 

The bank sees “a rather asymmetric risk-reward” in Greggs, while it also believes “the business is approaching trough cycle.” As a result, JPMorgan highlighted “significant re-rating potential,” with catalysts more resilient than expected.

The upgrade reignited interest in a stock that has been heavily sold off during 2025.

Investor positioning underscores scepticism: Greggs is currently the most-shorted stock in London, with short interest standing at 9%, according to Shorttracker. 

The question now is whether Friday’s rally marks the start of a sustained recovery or just another bounce in a downtrend. With the stock still well below pre-slump levels and sitting under a technical ceiling, investors may need further evidence of improvements before committing to the bull case.