Jefferies bumps up SSP price target
SSP Group
161.30p
16:45 31/10/24
Jefferies upped its price target on shares of SSP on Wednesday to 340p from 325p.
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The bank said it sees "material" upside to SSP. "Further acquisitions and increases to net new wins provide potential catalysts and continued growth should narrow the valuation gap from pre-Covid levels," it said.
Jefferies updated its estimates for the Midfield acquisition, higher non-controlling interests, and higher capex and revenue growth in FY25.
It said new pre IFRS-16 guidance could help align and stabilise consensus earnings per share estimates helping to remove uncertainty.
The bank’s EBITDA estimates increased 5.6%, 0.5% and 3.3% for FY23-FY25E and it is now 1%, 3.4% and 5.2% ahead of consensus, respectively.
The new target price reflects a higher medium term growth rate (now 8% versus 6%), supported by higher capex spend, Jefferies said. It rates the stock at ‘buy’.