Shares of WH Smith PLC (LON:SMWH) have received a consensus recommendation of “Moderate Buy” from five analysts, according to a report by MarketBeat. This assessment comes as the analysts assigned an average target price of GBX 868.60 for the stock over the next year. Of the analysts covering WH Smith, two have issued a hold rating while three have designated it as a buy.
Several investment firms have recently updated their evaluations of WH Smith. On December 2, 2023, JPMorgan Chase & Co. raised its target price from GBX 750 to GBX 800, classifying the stock as “overweight.” Following this, on December 19, 2023, Peel Hunt reaffirmed its buy rating and set a price objective of GBX 800 for the shares. In contrast, Berenberg Bank reduced its price target from GBX 700 to GBX 667 and initiated a hold rating in a research note dated January 19, 2024.
Current Market Performance and Financial Overview
As of the market opening on Friday, WH Smith shares traded at GBX 678, reflecting a slight increase of 0.4%. The stock has experienced a one-year low of GBX 585.50 and a high of GBX 1,199. The company’s financial metrics indicate a debt-to-equity ratio of 253.13, a current ratio of 0.85, and a quick ratio of 0.42. WH Smith’s market capitalization stands at approximately £845.43 million, with a price-to-earnings (P/E) ratio of -5.98 and a P/E/G ratio of 2.65. The firm’s 50-day simple moving average is GBX 659.29, while the 200-day average is GBX 701.73.
In its latest quarterly earnings report released on December 19, 2023, WH Smith reported earnings per share (EPS) of GBX (14.20). The company recorded a net margin of 3.44% and a return on equity of 17.78%. Looking ahead, analysts predict WH Smith will achieve an EPS of approximately 100.94 for the current fiscal year.
Overview of WH Smith’s Operations
WH Smith PLC operates as a retailer both in the United Kingdom and internationally, functioning through two primary segments: Travel and High Street. The Travel segment caters to customers at airports, hospitals, railway stations, and motorway service areas, providing news, books, and convenience items. Meanwhile, the High Street segment focuses on stationery products, greeting cards, books, and impulse items such as newspapers, magazines, confectionery, and beverages.
As the company navigates the evolving retail landscape, analysts and investors will be keenly observing its financial performance and market strategies, especially in light of recent price adjustments and earnings reports.
