Travel Retail Focus Will Strengthen North American Presence

The consensus analyst price target for WH Smith has been reduced from £9.62 to £8.72, driven by material overstatement of trading profits, heightened concerns over profit transparency, and a widespread shift in analyst outlooks toward caution and risk mitigation. Analyst Commentary Material overstatement of trading profits has created uncertainty regarding the true profitability of the company's growth initiatives.

WH Smith's consensus price target was cut to £9.62 (from £10.27) as analysts flagged heightened uncertainty and risk following the identification of profit overstatement and financial inaccuracies, prompting a more cautious outlook until transparency issues are resolved. Analyst Commentary Profit overstatement identified by WH Smith, increasing uncertainty and leading to rating suspension by key brokers.

WH Smith's fair value has been revised downward primarily due to a higher discount rate and a modestly lower net profit margin, resulting in the consensus analyst price target dropping from £12.97 to £11.46. What's in the News Goldman Sachs suspended its rating on WH Smith due to insufficient information following the company's identification of an overstatement of profits (Periodicals).

AnalystConsensusTarget has decreased revenue growth from 3.7% to 1.0%, decreased profit margin from 7.3% to 6.3% and increased future PE multiple from 15.3x to 18.7x.

AnalystConsensusTarget has decreased revenue growth from 4.9% to 3.7% and decreased future PE multiple from 17.1x to 15.3x.

AnalystConsensusTarget has decreased revenue growth from 5.4% to 4.9%.

AnalystConsensusTarget has increased revenue growth from -0.9% to 5.4% and increased shares outstanding growth rate from -0.0% to 0.0%.

AnalystConsensusTarget made no meaningful changes to valuation assumptions.

AnalystConsensusTarget made no meaningful changes to valuation assumptions.