Morgan Stanley analyst Jamie Rollo maintained a Buy rating on Whitbread (WTB – Research Report) today and set a price target of p3,800.00.
Jamie Rollo has given his Buy rating due to a combination of factors, including Whitbread’s relative performance compared to its main competitor, Travelodge. Despite a challenging market environment, Whitbread has managed to maintain a stronger position, as Travelodge has reported a decline in RevPAR and underperformance in the market.
Additionally, Rollo notes that while there are current weaknesses in the market, particularly in London, there are positive indicators for future demand. These include promising long-lead event bookings and a limited increase in hotel supply, which could benefit Whitbread’s Premier Inn brand. Furthermore, the ambitious RevPAR expectations for Whitbread, if achieved, could significantly impact profitability, making the stock an attractive investment opportunity.
In another report released on March 20, Jefferies also maintained a Buy rating on the stock with a £32.00 price target.