SSP Group plc: Buy Rating Affirmed Amid Growth Potential and Strategic Initiatives

SSP Group plc (SSPG – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst James Wheatcroft from Jefferies maintained a Buy rating on the stock and has a p270.00 price target.

James Wheatcroft has given his Buy rating due to a combination of factors that highlight SSP Group plc’s potential for growth and stability. Despite the macroeconomic uncertainties flagged by the company, SSP Group has maintained its full-year guidance, indicating confidence in its financial outlook. The company has shown strong like-for-like sales in regions such as APAC, EEME, and the UK, which have helped offset reduced passenger numbers in North America.
Additionally, the potential valuation catalyst from the joint venture in India, which is expected to list on the Indian Stock Exchange, could provide further upside. SSP Group is also implementing an overhead cost savings program to support future earnings, along with a tighter capital expenditure plan. The possibility of a share buyback at the end of the year adds another layer of attractiveness. Furthermore, SSP’s current valuation appears appealing, trading at a significant discount compared to its pre-COVID price-to-earnings ratio.