RBC Capital initiates coverage of SSP at ‘outperform’

RBC Capital Markets initiated coverage of SSP on Wednesday at ‘outperform’ with a 300p price target.

"We view SSP as a leader in the global Food & Beverage (F&B) concessions market, with a strong space expansion story, particularly in the Americas and APAC," it said.

"Our survey work indicates tailwinds coming through in the travel retail space, and we expect operational leverage to come given a better use of data and digital."

RBC said the stock’s valuation remains undemanding compared with pre-pandemic and a global peer group.

SSP operates food and beverage outlets in travel locations worldwide. Its brands include Upper Crust and Ritazza.

At 1305 GMT, the shares were up 2.7% at 266.10p.