Whitbread share price: Liberum hopes for ‘more strategic clarity’

Tsveta van Son
  • February 13th 2019, 15:18
  • Last Updated: October 21st 2019, 15:13

Liberum hopes to see ‘more strategic clarity’ from Whitbread’s (LON:WTB) bosses at an investor event this afternoon, Proactive Investors reports. The comments came as the broker lifted its price target on the Premier Inn owner.

Whitbread’s share price has climbed higher in London in today’s session, having added 2.50 percent to 4,882.00p as of 14:49 GMT. The stock is outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.83 percent higher at 7,192.70 points. The group’s shares have added just under 30 percent to their value over the past year, as compared with about a 0.4-percent gain in the Footsie.

Liberum weighs in on Whitbread

Liberum which rates Whitbread as a ‘hold,’ lifted its price target on the shares from 4,450p to 4,800p. Proactive Investors quoted the analysts as saying that while it had lifted its price target on valuation grounds, it was hoping for ‘more strategic clarity’ from the group’s bosses.

“The stock is trading on an enterprise value/EBITDA multiple of 10.3x which seems fair given the challenging trading environment and recognising the asset underpinning,” the broker pointed out in a note to clients.

Other analysts on FTSE 100 group

The 18 analysts offering 12-month price targets for Whitbread for the Financial Times have a median target of 4,900.00p on the shares, with a high estimate of 5,750.00p and a low estimate of 2,000.00p. As of February 12, the consensus forecast amongst 23 polled investment analysts covering the blue-chip group advises investors to hold their position in the company. 

Whitbread updated investors on its third-quarter performance, posting a 2.4-percent rise in sales, while cautioning that it does not expect to grow profit in the financial year ending February 2020. 

As of 15:19 GMT, Wednesday, 13 February, Whitbread plc share price is 4,894.00p.

About the author

Tsveta van Son
Tsveta van Son is part of Invezz’s journalist team. She has a BA degree in European Studies and a MA degree in Nordic Studies from Sofia University and has also attended the University of Iceland. While she covers a variety of investment news, she is particularly interested in developments in the field of renewable energy.

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