Marston’s needs 2.5% LFL’s in H2 to hit our full year estimate of 2%. We expect a solid Q3 update next week and feel that the 9% 3 year EPS CAGR and improved quality of earnings is not reflected in a cal’16 P/E of 12.5x and a 4.5% yield. We argue that Marston’s is the least exposed amongst its direct peers to the twin sector threats of excess capacity and the National Living Wage. Marston’s is our only Buy in the pub/restaurant sub-sector currently and we reinforce our positive stance ahead of next week’s trading update.