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Whitbread’s Strong Performance and Favorable Trading Environment Justify Buy Rating

Whitbread’s Strong Performance and Favorable Trading Environment Justify Buy Rating

Simon LeChipre, an analyst from Jefferies, maintained the Buy rating on Whitbread. The associated price target is £31.00.

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Simon LeChipre has given his Buy rating due to a combination of factors including Whitbread’s strong performance in the first half of the year. The company exceeded expectations with a 4% adjusted profit before tax, primarily driven by the UK Premier Inn’s improved trading in the second quarter.
Additionally, the current trading environment appears favorable, as evidenced by a 3% year-over-year increase in revenue per available room (RevPAR), aligning with recent industry trends. Despite some challenges such as increased UK cost inflation and higher lease costs, as well as a reduced profit target in Germany, the overall outlook remains positive, supporting the Buy rating.

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