UK's SSP Group down after JPM cuts to 'neutral'
** Upper Crust owner SSP Group's SSPG.L shares down 3.88% at 151.10p
** J.P.Morgan cuts co to "neutral" from "overweight", trims PT to 200p from 280p
** Brokerage views SSPG's sales as "defensive", however adds that co's recovery to pre-pandemic profitability has been impacted by cost inflation and higher interest costs
** Co's shifted focus for growth in the U.S. and APAC regions has also led to lower net income for shareholders and this continues to be a profit drag in the near term, JPM adds
** Last month, SSPG had warned of lower-than-expected annual profits as a stronger pound and weakness in some European markets offset robust summer trading
** JPM also cut PT on travel retailer WH Smith SMWH.L to 1,700p from 1,950p and Swiss duty-free retailer Avolta AVOL.S to CHF 50 from CHF 60
** Median PT of 14 brokerages covering SSPG is 250p - LSEG
** Up to Tuesday's close, stock had fallen ~35% YTD
Reporting by Joel Jose in Bengaluru
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
