Analyst Jaina Mistry of Jefferies maintained a Buy rating on Whitbread (WTB – Research Report), retaining the price target of £32.00.
Jaina Mistry’s rating is based on a combination of factors that suggest Whitbread has the potential to outperform its peers despite current market challenges. The company’s performance, particularly in comparison to Travelodge, indicates a stronger position in the market. While Travelodge reported a decline in RevPAR, Whitbread managed a less severe drop, showcasing resilience in a tough economic climate.
Moreover, Whitbread’s strategic positioning, with less exposure to the London market and a focus on regional areas, provides an advantage over competitors like Travelodge, which is currently facing challenges due to its refurbishment program. Despite the broader economic headwinds and uncertainties in consumer and corporate confidence, Whitbread’s potential to capitalize on a recovering construction sector and its relatively stable demand outlook support the Buy rating.
According to TipRanks, Mistry is a 3-star analyst with an average return of 2.6% and a 46.88% success rate.
In another report released today, Morgan Stanley also maintained a Buy rating on the stock with a p3,800.00 price target.