Analyst Jaina Mistry from Jefferies maintained a Buy rating on Whitbread (WTB – Research Report) and keeping the price target at £32.00.
Jaina Mistry’s rating is based on a combination of factors that suggest potential upside for Whitbread’s stock. Despite recent declines in the UK Economy & Midscale RevPAR, Mistry sees an opportunity for recovery and growth. The expectation is that an improvement in UK RevPAR will help counteract cost inflation, ultimately enhancing profit margins and shareholder returns.
Furthermore, the analyst anticipates that strategic initiatives and market conditions could lead to a positive turnaround. While the current data shows some negative trends, the long-term investment thesis hinges on a rebound in performance metrics, which supports the Buy rating for Whitbread.
In another report released on March 7, Citi also maintained a Buy rating on the stock with a £37.00 price target.