Berenberg says markets wrong to price in continued fall in demand at Whitbread

Analysts at Berenberg kept their recommendation for Whitbread at 'buy', arguing that markets were wrong to price in a continued drop in demand.

The supply/demand balance in the UK continued to be favourable and the company's Accelerating Growth Plan was capable of driving "strong" growth in profit before tax into the medium-term.

So too, the German operations were headed towards breakeven and the Euro 2024 championships would help to raise the brand awareness of Premier Inn.

The shares' valuation was also supportive.

Berenberg judged the 13.9 price-to-earnings multiple that the shares were trading on to be "too cheap" given the quality of its outlook.

The broker kept its target price at 4,000.0p.