Whitbread: Oddo downgrades rating after sale of Costa

(CercleFinance.com) - Coca-Cola has bought Whitbread's Costa division, which is expected to represent 39% of Whitbread's sales and 23% of its EBIT in 2018.


Oddo now estimates that the stock's upside is limited to 6%; it has is therefore downgraded its rating on the stock to Neutral (vs. Buy), although has maintained its target price for the share at 4,900 pence.

Coca-Cola announced an acquisition price of 3.9 billion pounds (46% of Whitbread's EV before the announcement); this is above our expectation of 2.3 billion pounds and the valuation referred to by the press of around 3.0 billion pounds, Oddo says.


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