WH Smith (LON:SMWH) Price Target Lowered to GBX 680 at Canaccord Genuity Group

WH Smith (LON:SMWH) had its target price lowered by research analysts at Canaccord Genuity Group from GBX 762 to GBX 680 in a note issued to investors on Friday,Digital Look reports. The brokerage currently has a “buy” rating on the stock. Canaccord Genuity Group’s price objective indicates a potential upside of 20.25% from the stock’s previous close.

SMWH has been the subject of a number of other research reports. Royal Bank Of Canada cut their target price on shares of WH Smith from GBX 675 to GBX 650 and set a “sector perform” rating for the company in a research report on Monday, April 13th. Berenberg Bank lowered their price target on WH Smith from GBX 700 to GBX 667 and set a “hold” rating on the stock in a research report on Monday, January 19th. Three investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of GBX 720.50.

WH Smith Stock Performance

Shares of SMWH stock traded down GBX 5.50 during trading on Friday, reaching GBX 565.50. The company had a trading volume of 44,053,500 shares, compared to its average volume of 5,160,097. The firm’s 50 day simple moving average is GBX 606.89 and its two-hundred day simple moving average is GBX 640.88. WH Smith has a one year low of GBX 519 and a one year high of GBX 1,132. The company has a debt-to-equity ratio of 872.78, a current ratio of 0.39 and a quick ratio of 0.42. The company has a market capitalization of £705.15 million, a PE ratio of -4.99, a PEG ratio of 2.65 and a beta of 1.00.

WH Smith (LON:SMWH) last announced its earnings results on Thursday, April 23rd. The company reported GBX (20) earnings per share (EPS) for the quarter. WH Smith had a negative return on equity of 62.07% and a negative net margin of 9.27%.The company had revenue of £748 million for the quarter. Sell-side analysts forecast that WH Smith will post 100.9372747 earnings per share for the current year.

Insider Transactions at WH Smith

In related news, insider Max Izzard bought 25,000 shares of the company’s stock in a transaction that occurred on Thursday, January 29th. The shares were acquired at an average price of GBX 675 per share, with a total value of £168,750. Company insiders own 1.03% of the company’s stock.

More WH Smith News

Here are the key news stories impacting WH Smith this week:

• Positive Sentiment: Management is refocusing the group and taking cash-conserving measures to stabilise the balance sheet, which could support recovery if execution succeeds. WH Smith Cuts Dividend and Refocuses Strategy as Profit Falls Despite Revenue Growth
• Positive Sentiment: Board refresh — a non-executive director is stepping down and a new remuneration committee chair appointed — may improve governance and investor oversight during the turnaround. WH Smith Announces Board Changes and New Remuneration Committee Chair
• Neutral Sentiment: Top-line: revenue of £748m shows continued sales momentum in the quarter, but this is offset by margin pressure; investors will watch whether revenue can convert to profit going forward. Earnings release and slide deck
• Negative Sentiment: Dividend suspended/scrapped — management halted the payout to preserve cash, a clear negative for income-focused holders and a sign of stress. UK travel retailer WH Smith suspends dividend (Reuters)
• Negative Sentiment: Profit plunge and weak profitability metrics — the company reported GBX (20) EPS, negative net margin (~-9%) and large negative ROE; the shares fell sharply on the news. WH Smith shares tumble 10% after profit plunge, dividend scrapped
• Negative Sentiment: Debt concerns and external shocks — commentary highlights mounting debt levels and travel disruption (cited link to geopolitical impact), which amplify downside risk to cash flows. WH Smith scraps dividend as debt mounts

About WH Smith

WH Smith PLC operates as a retailer in the United Kingdom and internationally. It operates in two segments, Travel and High Street. The Travel segment offers news, books, and convenience for travelling customers. It operates stores in airports, hospitals, railway stations, and motorway service areas. The High Street segment sells stationery products, including greeting cards, general stationery, art and craft, and gifting products; news and impulse products, such as newspapers, magazines, confectionery, and drinks; and books.