Stock Market News
Canaccord buys into Whitbread demerger plans
(WebFG News) - Analysts at Canaccord Genuity bought into Whitbread's announced de-merger with its Costa Coffee arm, arguing that there were no synergies to be had from keeping the two together.
Indeed, if management at either slipped-up, there would be plenty of suitors about to prop-up the two companies' shares, they said.
"We already expect the management teams of IHG, Marriott, and Accor to be doing their homework," they added, saying they remained 'buyers' of the shares.
Despite the funding shortfall in Costa's pensions, they also believed a de-merger was possible in less than the two year timeline outlined by the company.
Until a de-merger was concluded, the Canadian broker said, Whitbread had the "opportunity to turn interesting international bridgeheads into material growth opportunities for both Premier Inn and Costa," in reference to Germany and China, respectively.
Back on the subject of the company's pension liability, Canaccord pointed to the £4bn-plus of freehold asset on the balance sheet - mostly at Premier Inn - and its low net debt-to-EBITDA ratio of 1.1 as reasons why it would expect the pension liability and the majority of the debt to be retained in Premier Inn.
Canaccord kept its target price for the shares at 4,500p but mooted a potential break-up price of 5,200p.
Indeed, if management at either slipped-up, there would be plenty of suitors about to prop-up the two companies' shares, they said.
"We already expect the management teams of IHG, Marriott, and Accor to be doing their homework," they added, saying they remained 'buyers' of the shares.
Despite the funding shortfall in Costa's pensions, they also believed a de-merger was possible in less than the two year timeline outlined by the company.
Until a de-merger was concluded, the Canadian broker said, Whitbread had the "opportunity to turn interesting international bridgeheads into material growth opportunities for both Premier Inn and Costa," in reference to Germany and China, respectively.
Back on the subject of the company's pension liability, Canaccord pointed to the £4bn-plus of freehold asset on the balance sheet - mostly at Premier Inn - and its low net debt-to-EBITDA ratio of 1.1 as reasons why it would expect the pension liability and the majority of the debt to be retained in Premier Inn.
Canaccord kept its target price for the shares at 4,500p but mooted a potential break-up price of 5,200p.
Related share prices |
---|
Whitbread (WTB) share price |
Stock News headlines are gathered from financial news sources around the web. Views and opinions on each item are from their respective authors and website. They are not opinions of LiveCharts.co.uk
Get a free widget for your website with our latest headlines.
You can now add our live prices and new headlines to your website.The news widget features quotes for Oil prices, spot Gold price and Indices plus a choice of news channel for healines.
Top Shares pages
- Share price quotes
- Share charts
- Share watch list
- Company Results Calendar
- Top Large UK Shares
- UK Market Sectors
- Stock market news
- Company news
- Share tips
- A-Z company search
More share features
POPULAR Share Prices
- Royal Mail share price
- Lloyds share price
- HSBC share price
- Barclays share price
- Prudential share price
- Santander share price
- NEXT share price
- Diageo share price
- BP share price
- Vodafone share price
- British Airways
- Centrica share price
- Tesco share price
- Taylor Wimpey Share Price
- National Grid
- GKP Share Price
- Marks and Spencer
- Rolls Royce
- Rio Tinto
- THG Share Price
- Aviva Share Price
- Boil Share price
- Easyjet Share Price
- Genedrive Share Price
- SSE Share Price
- IAG Share Price
- Boohoo share price
- HE1 share price
- AVCT share price
- BOOM share price