WH Smith: RBC a buyer ahead of trading update.
(CercleFinance.com) - RBC Capital Markets remains positive on WH Smith and says it would buy the shares ahead of the group's fourth-quarter trading update on 30 August.
The broker sees upside potential in the consensus' earnings forecasts for both this year and next, owing to strong travel retail sales momentum and further cost reduction efficiencies.
RBC also thinks the stock's valuation is very reasonable given the British retailer's high visibility growth, its dividend yield and share buybacks, which makes the broker reiterate its "outperform" rating on the stock.
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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.
The broker sees upside potential in the consensus' earnings forecasts for both this year and next, owing to strong travel retail sales momentum and further cost reduction efficiencies.
RBC also thinks the stock's valuation is very reasonable given the British retailer's high visibility growth, its dividend yield and share buybacks, which makes the broker reiterate its "outperform" rating on the stock.
Copyright (c) 2017 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.