Berenberg starts SSP Group at 'hold', says further cash raise 'likely'

"SSP's shares have rallied substantially since the COVID-19 vaccine announcements and the shares appear to have factored in a smooth recovery despite a significant level of uncertainty remaining," they said.

Even so, should the stock fall back below 300.0p, the analysts said they would consider upgrading their recommendation to a 'buy'.

Uncertainty aside, industry bodies didn't expect air passenger numbers to return to their 2019 levels until 2024, although those in rail might recover sooner.

As well, it was "likely" that the firm would need to go cap in hand to investors again, as restrictions on HM Treasury and BoE's Covid Corporate Financing Facility increased in May 2021, and due to the reintroduction of covenants at FY 2021, rent deferrals, debt due in 2022 and the time needed to return to management's target level for leverage.

On the flip-side, the uncertain backdrop might allow SSP to gain market share and the firm had the ability to stagger re-openings at multi-unit sites as the recovery progressed; that is to say, the company's variable costs were higher.

Berenberg set an initial target price of 335.0p.