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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