Redburn downgrades Premier Inn owner Whitbread

26th Sep 2023 10:41

(Sharecast News) - Redburn downgraded its stance on Premier Inn owner Whitbread on Tuesday to 'sell' from 'neutral', with a target price of 3,000p.

Redburn said consensus expectations for pricing versus 2019 are 20% higher for Whitbread than any other hotel group it covers.

"We argue the data suggests this is less due to supply restrictions than the company believes," it said.

"Whitbread is a superbly run business, with top-class cost control, but this isn't enough when we are 11% below consensus for RevPAR (revenue per available room) in 2026, which drops through to 16% at EBITDA."

At 1125 BST, the shares were down 1.7% at 3,517p.