Berenberg upgrades SSP, downgrades WH Smith
By Michele Maatouk
Date: Friday 12 Sep 2025
(Sharecast News) - SSP rallied on Friday as Berenberg lifted its stance on the Upper Crust owner to 'buy' from 'hold', saying the share price does not reflect the intrinsic value.
The bank, which upped its price target on SSP to 190p from 180p, said the group has attractive exposure to the US as well as the fast-growing Indian market.
"Moreover, the company's established UK and Ireland (UK&I) business has also delivered strong spend per passenger (SPP) growth.
"Looking ahead to FY26, we expect a material improvement in profitability as the company experiences the benefits of its restructuring programme in France and Germany, and it exits its German motorway business.
"Furthermore, the successful listing of Travel Food Services (TFS; the company's India JV), has demonstrated the inherent value in SSP's Asia-Pacific (APAC) operations."
Berenberg said there is scope for SSP to return capital to shareholders were it to monetise its stake in TFS.
"In our view, SSP's share price does not reflect its intrinsic value; therefore, we upgrade our recommendation to buy."
In the same research note on leisure, Berenberg downgraded WH Smith to 'hold' from 'buy' and slashed the price target to 700p from 1,600p as it awaits the outcome of Deloitte's review of the accounts.
"We think that the company's top-line growth profile is stronger today than it was in the past following the sale of its high street and funkypigeon.com businesses," Berenberg said.
"Moreover, we remain of the view that WH Smith's North America exposure is attractive. However, the company's overstatement of headline trading profit by circa £30m last month means the profitability of this growth is now uncertain."
At 0915 BST, SSP shares were up 2.7% at 156.10p, while WH Smith was 1.8% lower at 674p.
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