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Investing.com - Bernstein SocGen Group has reiterated an Outperform rating and GBP36.00 price target on Whitbread PLC (LON:WTB) (OTC:WTBCF) following a significant stock decline after the company’s first-half results.
The hospitality company’s shares fell approximately 10% following its H1 report, which Bernstein describes as "badly received" despite strong UK RevPAR (Revenue Per Available Room) data. The firm maintains its price target as management kept forward earnings expectations flat, with downgrades to Germany guidance and increased inflation concerns offsetting strong trading performance.
Bernstein analyst Richard Clarke characterized the 10% stock drop as "a massive overreaction," noting that despite short-term challenges, the firm sees "little reason to change" its fiscal year 2026/2027 forecasts. The research note highlighted management’s limited reassurance regarding the sustainability of current 3% RevPAR and potential cost increases related to nuclear charges and living wage requirements.
The investment firm projects a transition from a 7% drop in profit before tax in H1 to growth resumption in H2, with acceleration expected over the next two years to 16% growth in 2027/2028. Bernstein believes this growth trajectory is not reflected in Whitbread’s current valuation of less than 9 times 2026/2027 EBITDA.
Bernstein maintains its positive outlook on Whitbread , describing the current price as "a good entry point" despite what it terms "a restless quarter" for the hospitality company.
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