Peel Hunt adds WH Smith to 'buy' list after solid sales figures

Broker Peel Hunt has added WH Smith to the 'buy' list and also lifted its target price after the company reported positive sales figures on Wednesday

Peel Hunt said its target price was now 1,800p from a previous 1,680p.

"A very pleasant surprise from WH Smith. Like-for-like trading on the High Street is in positive territory for the first time in at least a decade, and Travel retains its momentum: there's a decent upgrade here and with a demerger a distinct possibility, the shares are cheap," the broker said.

"The High Street was buoyed by strong demand for adult colouring, which remains extremely popular, but WH Smith executed its promotions well too and demand for TV listings mags helped the news and impulse category."

Peel Hunt said it was adding a further $2m to first half expectations for Smith's High Street operations as cost savings came through as forecast, and was adding another £1m to the full year as it expects continued momentum.