Update shared on 06 Nov 2025
Fair value Increased 0.56%Analysts have slightly raised their average price target for WH Smith to £8.13 from £8.09. This change is attributed to updated profit forecasts and recent shifts in buy and hold recommendations.
Analyst Commentary
Recent street research on WH Smith reveals a range of perspectives on the company's prospects, with several analysts updating their views on the business's valuation, growth execution, and outlook amid recent events.
Bullish Takeaways- Bullish analysts have raised their recommendations, signaling confidence that the underlying business fundamentals remain intact despite recent challenges.
- The new price targets from some analysts reflect optimism that profit forecasts will recover, with upside potential if the company delivers on operational improvements.
- The ongoing strength in WH Smith's growth platforms and international exposure continue to underpin positive sentiment on future returns.
- Recent upgrades suggest that at current valuations, the risk-reward profile of the stock could be attractive for long-term investors.
- Bearish analysts have expressed caution due to the company’s recent overstatement of trading profits, which introduces fresh uncertainty around the sustainability of earnings growth.
- Significant cuts to price targets point to a less favorable medium-term outlook, as questions around execution and profitability linger.
- The suspension of coverage by a major investment bank highlights a lack of confidence in the reliability of financial information provided by the company.
- Overall, the combination of lower profit guidance and diminished clarity on future performance has led some analysts to adopt a more neutral or cautious stance.
What's in the News
- Goldman Sachs suspended its rating on WH Smith because it does not have enough information after the company disclosed an overstatement of profit in its Periodicals segment.
Valuation Changes
- Consensus Analyst Price Target has risen slightly from £8.09 to £8.13, reflecting updated market expectations.
- Discount Rate has increased modestly from 12.17% to 12.44%, indicating a minor uptick in perceived risk or cost of capital.
- Revenue Growth remains negative, but the decline has lessened from -2.53% to -2.25%.
- Net Profit Margin has fallen significantly from 7.81% to 5.52%, indicating margin pressure.
- Future P/E has increased from 10.4x to 14.8x, pointing to higher projected valuations relative to expected earnings.
Disclaimer
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