Citi lifts Whitbread price target, reiterates 'buy' rating.
Citi lifted its price target on Whitbread on Thursday to 3,800p from 3,600p as it reiterated its ‘buy’ rating, saying it sees a "compelling investment case" after the 29% share price increase since April.
Source: Sharecast
"Balance sheet strength enables growth beyond the UK market as our UK project tracker shows circa 30% of Premier Inn’s pipeline is office-to-hotel conversions, while in Germany we are encouraged by a Q2 hotel development pipeline inflection," the bank said.
"With current RevPAR growth not significantly skewed by concert calendars or weather, and inbound-outbound travel now broadly normalised supports a recovery over time towards c.+2% RevPAR driven by economic factors and supported by our expectation of c.0.5% UK market supply growth."
Citi said the stock’s valuation is undemanding versus its own history and the UK market and the underlying investment case driving 10% earnings per share growth compelling.
Halifax is not responsible for the content and accuracy of the Markets News articles. We may not share the views of the author. Understand the risks, please remember the value of your investment can go down as well as up and you may not get back the full amount you invest. We don't provide advice so if you are in any doubt about buying and selling shares or making your own investment decisions we recommend you seek advice from a suitably qualified Financial Advisor. Past performance is not a guide to future performance.
