Deutsche Bank hikes target price on Whitbread following FY results

26th Apr 2023 10:09

(Sharecast News) - Analysts at Deutsche Bank hiked their target price on Premier Inn owner Whitbread from 3,530.0p to 3,780.0p on Wednesday after the group's full-year results came in ahead of expectations.

Whitbread posted pre-tax profits of £413.0m, up 6% versus consensus of £389.0m, while cash generation was said to have remained "solid", with cashflow from operating activities of £800.0m - up from £509.0m on a year ago.

Deutsche Bank pointed out that this meant that even after a high capex of £546.0m, Whitbread was able to declare dividends of 74.2p for the year and announce a £300.0m buyback to be completed by the end of the first half of 2024.

"Shares reacted positively, up 4.25% yesterday, versus a slightly negative Stoxx 600 (-0.4%)," add DB, which reiterated its 'buy' rating on the stock.

Reporting by Iain Gilbert at Sharecast.com