Whitbread: Jefferies maintains buy rating on disposal talk
(CercleFinance.com) - Jefferies reinstates its 'buy' rating on Whitbread shares, maintaining its target price at £40, citing press rumours that the UK hotel group is considering disposing of its Beefeater and Brewers Fayre brands.
" We would welcome a move to divest the underperforming tail of F&B brands, which are not a significant driver of RevPAR and likely dilutive to returns," the broker reacted to this.
Although the extent of the potential divestments is unclear, Jefferies believes that the sale of both these brands could imply an enterprise value of around £180-350m, providing the group with funds to reinvest in growth in Germany.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
" We would welcome a move to divest the underperforming tail of F&B brands, which are not a significant driver of RevPAR and likely dilutive to returns," the broker reacted to this.
Although the extent of the potential divestments is unclear, Jefferies believes that the sale of both these brands could imply an enterprise value of around £180-350m, providing the group with funds to reinvest in growth in Germany.
Copyright (c) 2023 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.