These are top 10 stocks traded on the Robinhood UK platform in July
On Friday, JPMorgan analysts issued a downgrade for Whitbread PLC (LON:WTB:LN) (OTC: WTBCF), shifting the stock’s rating from Overweight to Neutral. Accompanying this downgrade, the firm also reduced its price target significantly from GBP44.00 to GBP30.00. The revision reflects a notable cut of approximately 30% to the new target price.
The decision to downgrade is based on a revised profit before tax (PBT) forecast, which has been lowered by an average of 9% for the fiscal years 2026-2028. Analysts at JPMorgan cited a series of challenges facing the UK consumer market, which have been exacerbated following the recent UK budget announcement. The downgrade comes in the context of Whitbread’s shares already exhibiting weakness over the past year, with a decline of around 20%.
The analyst’s commentary highlights a broader trend of underperformance among retailers that cater to lower-income demographics. Recent market disappointments have been noted from companies such as Greggs (LON:GRG), which saw its shares fall by 9% on the day of its results announcement earlier this week. Other retailers like B&M, Dunelm, Poundland (owned by Pepco), and Primark UK (ABF) have also delivered statements that fell short of market expectations.
JPMorgan’s analysis initially projected a RevPAR (revenue per available room) inflection for Whitbread in the current year, anticipating a positive turn based on easier comparative figures from the previous year. However, the current assessment suggests a more cautious outlook for the company’s performance in the near term.
The revised price target of GBP30.00 by JPMorgan aligns with the firm’s updated view on Whitbread’s financial prospects and the broader challenges observed in the UK’s consumer sector, particularly affecting companies with a significant proportion of their customer base among lower-income earners.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.