Update shared on13 Oct 2025
Fair value Decreased 2.11%Analysts have adjusted their price target for SSP Group downward, lowering it from 210 GBp to 200 GBp. This change was made due to revised growth expectations and updated market assumptions.
Analyst Commentary
Recent analyst updates on SSP Group highlight a mix of optimism and caution regarding the company's outlook. Below are some key takeaways from the latest research notes:
Bullish Takeaways- Bullish analysts note that SSP Group offers attractive exposure to the fast-growing Indian market and the sizable U.S. market, presenting strong opportunities for international expansion and revenue growth.
- Positive revisions in price targets from select analysts indicate confidence in the company's ability to capture growth through strategic geographic presence.
- The upgrade to a Buy rating by some analysts reflects renewed optimism in SSP Group's execution capabilities and the potential for improved financial performance over the medium term.
- Bearish analysts are exercising caution by reducing price targets, citing tempered growth expectations and more conservative assumptions around market conditions.
- There are concerns about the company's ability to sustain its pace of growth given recent adjustments to valuation and market outlook.
- Maintaining Neutral or Equal Weight ratings signals a wait-and-see approach, reflecting uncertainty around near-term performance and risk factors.
What's in the News
- SSP Group released earnings guidance for 2025, forecasting group revenue of approximately £3.7 billion, with operating profit expected to reach around £230 million, up 11% year-on-year with a margin of 6.2% (Key Developments).
- The company estimates like-for-like sales growth of 4%. Additional growth is expected from contract gains and acquisitions, partly offset by the staged exit from German Motorway Services and the deconsolidation of the Adani Airport Holdings joint venture (Key Developments).
- SSP expects full-year 2025 EPS at about 11.5 pence, which is in the middle of its planned range and in line with market expectations. The company also anticipates fiscal year 2026 EPS to meet current market estimates (Key Developments).
- Activist investor Irenic Capital Management is encouraging private equity firms to consider taking SSP Group private, suggesting a possible 50% premium over current value and citing the company’s recovery challenges, growth prospects, and potential asset sales (Key Developments).
- SSP Group’s CEO acknowledged that the ongoing post-pandemic recovery has yet to match pre-2019 margins, with the company focusing on strategic initiatives for long-term growth (Key Developments).
Valuation Changes
- Fair Value Estimate has decreased slightly, moving from £2.29 to £2.24 per share.
- Discount Rate remains unchanged at 12.94%.
- Revenue Growth Forecast has been revised downward from 5.3% to approximately 4.8%.
- Net Profit Margin projection has increased modestly, rising from 4.22% to 4.44%.
- Future P/E Ratio has decreased from 15.1x to 14.3x. This change reflects revised earnings expectations.
Disclaimer
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