WH Smith stock rating downgraded by Berenberg amid profit concerns

Published 12/09/2025, 09:06
WH Smith stock rating downgraded by Berenberg amid profit concerns

Investing.com - Berenberg has downgraded WH Smith (LON:SMWH) (OTC:WHTPF) from Buy to Hold and significantly reduced its price target to GBP7.00 from GBP16.00, citing concerns over the company’s profitability.

The international travel retail operator, which recently sold its high street and funkypigeon.com businesses, is facing uncertainty after overstating its headline trading profit by approximately £30 million last month.

Despite acknowledging WH Smith’s strong top-line growth profile and attractive North American exposure, Berenberg analyst Luka Trnovsek expressed caution about the company’s financial reporting.

The downgrade comes as Deloitte conducts a review of WH Smith’s accounts following the profit overstatement disclosure.

Berenberg’s new price target of 700 pence represents a substantial reduction from its previous 1,600 pence target, reflecting diminished confidence in the company’s near-term prospects until the accounting review is completed.

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