- Whitbread
- 07 March 2025 09:29:19
Source: Sharecast
The bank said it was reshuffling its preferences within hotels, revisiting its ‘overweight’ on France’s Accor and downgrading Whitbread "on the back of a fragile UK consumer from lower income demographics".
"We become more selective with regards to our preferences, given sustained discrepancy between segments and geographies, further focusing on equity stories combining a solid RevPAR momentum and near-term positive catalysts," JPM said.
It made Accor its "top pick" and sole 'overweight', with more than 20% upside potential, as it said it benefits from the best set-up in terms of above peers average trading momentum and re-rating potential.
As far as Whitbread is concerned, JPM said that while the shares have been weak for over a year now, down around 20%, the UK consumer seems to have deteriorated lately following the UK budget, with particular weakness in retailers weighted into spending from lower income demographics.
It noted that Greggs, B&M European Value Retail and Dunelm all disappointed the market in recent statements, as well as Poundland and Primark UK.
At 0925 GMT, Whitbread shares were down 1.2% at 2,501p.