Whitbread: Liberum cuts target price
(CercleFinance.com) - Liberum maintains a "hold" rating on the Whitbread share, cutting its corresponding target price from 4600 pence to 3900 pence, noting that the growth prospects of RevPar (revenue per available room) in the UK are deteriorating.
Believing that "Economic and political uncertainty is likely to continue to curtail hotel demand growth," the broker has cut its pre-tax profit forecast for the group by 5% for 2020 and by 14% for 2021.
"Shares are trading below historic averages but we see limited scope for near term positive catalysts" Liberum says, for which, "This stock is for investors with a longer term investment horizon".
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