Whitbread share price: Analysts flag weak first-quarter trading update

Costa Coffee and Premier Inn owner to post results on Wednesday

Whitbread share price: Analysts flag weak first-quarter trading update

Deutsche Bank expects Whitbread’s (LON:WTB) first-quarter update next week to be weak, Proactive Investors reports. The results, due out on Wednesday, will come after the FTSE 100 company signalled earlier this year that it might spin off its Costa Coffee business.

Whitbread’s share price has jumped in London in today’s session, having added 1.65 percent to 4,059.00p as of 14:34 BST, marginally outperforming the broader market rally which has seen the benchmark FTSE 100 index gain 1.26 percent to 7,651.37 points. The group’s shares have added nearly three percent to their value over the past year, largely in line with the Footsie.

Whitbread to post Q1 update

Whitbread is scheduled to update investors on its performance on Wednesday and Proactive Investors reports that Deutsche Bank is expecting the company’s first-quarter results to be weak, reflecting recent trends in the UK hotels market and the tough market conditions hitting retail footfall.

The analysts, however, said that they believed that “efficiency savings (raised recently from £150 million to £250 million) provide some protection to consensus estimates. Still, recent corporate announcements including the Costa demerger would likely support the shares”.

Investors are also likely to be eyeing Whitbread’s plans for Costa Coffee, after the FTSE 100 company recently said that it was open to selling either its coffee chain or its Premier Inn business to another company.  

Analysts on Costa Coffee owner

The 22 analysts offering 12-month price targets for Whitbread for the Financial Times have a median target of 4,315.00p on the shares, with a high estimate of 4,950.00p and a low estimate of 2,000.00p. As of June 20, the consensus forecast amongst 26 polled investment analysts covering the Costa Coffee and Premier Inn owner advises investors to hold their position in the company.

As of 15:03 BST, Friday, 22 June, Whitbread plc share price is 4,060.00p.

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