Whitbread rallies as Credit Suisse hails growth and lifts price target
Costa Coffee and Premier Inn owner Whitbread was the standout gainer on the FTSE 100 as Credit Suisse added the stock to its ‘Global and Europe Focus Lists’, lifting the price target to 5,800p from 5,500p.
FTSE 100
8,060.61
15:45 15/11/24
FTSE 350
4,453.56
15:45 15/11/24
FTSE All-Share
4,411.85
15:45 15/11/24
Travel & Leisure
8,607.27
15:45 15/11/24
Whitbread
2,905.00p
15:45 15/11/24
“Being ‘outperform’ rated on Whitbread for the last three years, we have frequently encountered those who feel they missed the stock. With broader value support than at most stages for 10 years, we see now as the time to revisit this quality growth story,” said CS.
The bank noted that UK revenue per available room in Whitbread’s third-quarter numbers grew 5.3%, which was ahead of the 4% growth forecast by CS.
In addition, it said competition is benign. Premier Inn's RevPAR premium is back to around 10% but Travelodge growth plans are modest and its TripAdvisor scores are now plateauing at 3.9 versus 4.4 for Premier Inn.
Credit Suisse said the UK National Living Wage impact is in its forecasts and it sees Whitbread focusing on efficiency as well as growth.
The bank added that it believes in the international growth credentials with Costa now turning profitable.
At 1025 GMT, Whitbread shares were up 2.2% to 4,801p.