Shares of WH Smith PLC (LON:SMWH) have received a consensus recommendation of “Moderate Buy” from five analysts monitoring the company, according to MarketBeat. Analysts indicate a positive outlook with three ratings categorized as “buy” and two as “hold.” The average price target set for the stock over the next year stands at GBX 868.60.
In recent assessments, several investment firms have revised their projections for WH Smith. On December 2, 2023, JPMorgan Chase & Co. upgraded their target price from GBX 750 to GBX 800, assigning an “overweight” rating to the shares. Following closely on December 19, 2023, Peel Hunt reaffirmed a “buy” rating while maintaining a price target of GBX 800. Conversely, Berenberg Bank reduced their target from GBX 700 to GBX 667, designating the stock with a “hold” rating on January 19, 2024.
As of the latest trading session, WH Smith shares opened at GBX 678 and have experienced a 0.4% increase. The stock has seen fluctuations with a low of GBX 585.50 and a high of GBX 1,199 over the past year. The company currently holds a market capitalization of approximately £845.43 million and displays a debt-to-equity ratio of 253.13.
Analysts have been focusing on the company’s financial health. WH Smith reported a net margin of 3.44% and a return on equity of 17.78% in its most recent earnings report. The firm announced a quarterly earnings per share (EPS) of GBX (14.20) on December 19, 2023. Looking ahead, analysts predict that the company will achieve an average EPS of 100.94 for the current fiscal year.
Company Profile and Operations
WH Smith PLC operates as a major retailer both in the United Kingdom and internationally, divided into two primary segments: Travel and High Street. The Travel segment caters to customers at airports, hospitals, railway stations, and motorway service areas, offering products like books, news, and travel necessities. The High Street segment focuses on selling stationery, greeting cards, books, and various impulse items, including newspapers and confectionery.
As investment firms continue to analyze WH Smith’s performance and market conditions, the company’s ability to adapt and respond to changing consumer behavior will be crucial. Investors and analysts alike will be watching closely as updates on the retailer’s strategic initiatives and financial results unfold.
