Peel Hunt upgraded its stance on shares of Premier Inn owner Whitbread on Friday as it said the stock has been oversold on reopening fears.
The broker, which maintained its 3,600p price target, noted that Whitbread’s share price has fallen along with other companies exposed to a prolongation of Covid-19-related disruption.
“It does look like it may have a tougher summer than we expected. However, its competitors are likely to do worse and it can use its very solid balance sheet to carry on investing and picking up attractive assets.
“With the EV having fallen to circa 11% below pre-Covid-19 levels and with undervalued, asset-rich, UK-listed companies being picked off by acquirers we upgrade our recommendation.”
At 1000 BST, the shares were up 3.7% at 2,980p.
