WH Smith: RBC Capital Markets raises target price.
(CercleFinance.com) - On Thursday RBC Capital Markets raised its target price for the WH Smith stock from 2,000 pence to 2,200 pence, maintaining its "outperform" rating on the stock.
In a research note, the broker said the British newspaper, books and stationery retailer's travel business is "underappreciated."
"We think the long-term growth prospects and likely resilience of WH Smith's Travel business (over 60% of profit) is underappreciated, given management's track record of generating superior, turnover-based rents for landlords," it wrote in the report.
In particular RBC thinks that the group's margins will continue to improve, due to mix and further cost savings.
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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.
In a research note, the broker said the British newspaper, books and stationery retailer's travel business is "underappreciated."
"We think the long-term growth prospects and likely resilience of WH Smith's Travel business (over 60% of profit) is underappreciated, given management's track record of generating superior, turnover-based rents for landlords," it wrote in the report.
In particular RBC thinks that the group's margins will continue to improve, due to mix and further cost savings.
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.