Whitbread Shares Pressured: Jefferies Cuts Price Target Amid Softer Q2 Data

Analysts at Jefferies cut their price target for Premier Inn owner Whitbread (LON: WTB) in a note to clients this week, citing softer second-quarter data.

In June, the firm reiterated its Buy rating on Whitbread, following the hospitality firm’s growth plans, which included overhauling its struggling food and beverage business by closing sites and cutting 1,500 jobs.

It said the accelerated growth plan suggested Whitbread had a “clear line of sight on the F&B turnaround, stronger long-term UK margins, pipeline trajectory and market share growth”.

However, in its latest note on the stock, Jefferies cut its price target for the Whitbread shares to 3,900p from 4,000p, with UK industry data indicating that the second quarter should come in softer than the firm's initial expectations.

Jefferies maintained its Buy rating on the stock, telling investors that catalysts should arrive towards the end of the year, as Germany reaches its break-even run-rate in the second half and operating expense inflation rolls over in FY26.

Whitbread shares are down over 22% this year and 16% in the last 12 months as the stock struggles to gain any upside momentum.

Nevertheless, most analysts remain bullish. In May, Deutsche Bank initiated coverage of Whitbread with a Buy rating and a 4,150p price target.

The investment bank noted that Premier Inn is already the market leader in UK Hotels, with a 12% share. However, they still see a compelling rollout opportunity for the company.