Whitbread: Oddo BHF still a buyer, but cuts target price

(CercleFinance.com) - Oddo BHF reinstates its "buy" rating on the Whitbread share, while cutting its corresponding target price from 3500 pence to 3400 pence, the day after the group announced annual results that are in line with expectations, along with a 1 billion pound capital increase.


The analyst says that this comes as a surprise, as we thought the group had leeway for additional debt. He also points to the 37.4% discount in the price offered in the deal, compared to the previous day's share price.

Nevertheless, despite pressure on the share following the announcement of the capital increase, Oddo BHF maintains a positive view on the share, believing that the group will outperform in the recovery, thanks to the resilience of its business model.


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