Berenberg remains bullish on Whitbread (LON:WTB), arguing that the headwinds facing the Costa Coffee and Premier Inn owner should not be of too much concern, Citywire reports. The comments follow the Costa Coffee and Premier Inn owner’s interims at the end of October.
Whitbread’s share price inched higher in the previous session, adding 0.16 percent to close at 3,870.00p. The stock outperformed the broader UK market, with the benchmark FTSE 100 index closing marginally lower. The group’s shares have added more than six percent to their value over the past year, largely in line with the Footsie.
Berenberg bullish on Whitbread
Berenberg retained its ‘buy’ recommendation on Whitbread yesterday, valuing the shares at 4,900p. Citywire quoted the broker’s analyst Stuart Gordon as explaining that the Costa Coffee and Premier Inn owner was “an attractive growth story that is being affected by two significant headwinds – weak like-for-like growth at Costa and the uncertainty about Brexit”.
“We remain convinced that in the case of Costa, the ongoing structural growth is better than the company is being given credit for and that despite the recent attentions of an activist investor it would need a significant offer to make a sale in the interests of shareholders,” the analyst pointed out.
The comments came after it recently emerged that an activist investor that has built a stake in Whitbread was likely to push for a break-up of the company.
Other analysts on FTSE 100 group
The 22 analysts offering 12-month price targets for Whitbread for the Financial Times have a median target of 4,125.00p on the shares, with a high estimate of 4,900.00p and a low estimate of 3,200.00p. As of December 16, the consensus forecast amongst 28 polled investment analysts covering the Costa Coffee and Premier Inn owner advises investors to hold their position in the company.