Update shared on21 Sep 2025
Fair value Decreased 9.35%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.
- Bullish analysts have significantly reduced price targets, reflecting diminished confidence in short-term recovery prospects.
- Profit identification issues have prompted leading institutions like Goldman Sachs to suspend coverage, citing insufficient information.
- Bearish analysts express caution, shifting ratings to Hold and cutting targets in response to transparency and reliability concerns.
- Conservative outlooks now dominate, with consensus view shifting away from prior growth optimism toward risk mitigation.
What's in the News
- Goldman Sachs suspended its rating on WH Smith due to insufficient information (Periodicals).
- The suspension follows WH Smith’s identification of a profit overstatement (Periodicals).
- The profit overstatement has raised concerns about the company’s financial reporting (Periodicals).
- The development introduces uncertainty regarding WH Smith’s profitability and future outlook (Periodicals).
- The market may scrutinize WH Smith's transparency and corporate governance in the aftermath of these disclosures (Periodicals).
Valuation Changes
Summary of Valuation Changes for WH Smith
- The Consensus Analyst Price Target has fallen from £9.62 to £8.72.
- The Consensus Revenue Growth forecasts for WH Smith has significantly fallen from -2.1% per annum to -2.5% per annum.
- The Future P/E for WH Smith has fallen from 12.04x to 10.92x.
Disclaimer
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