Royal Bank Of Canada Cuts WH Smith (LON:SMWH) Price Target to GBX 650

Key Points

• Royal Bank of Canada cut its price target on WH Smith to GBX 650 (from GBX 675) and rates the stock "sector perform," implying about a 10.65% upside from the prior close.
• Analysts are split — three Buy and three Hold — giving a MarketBeat consensus rating of "Moderate Buy" and a higher average target of GBX 832.17.
• Fundamentals look strained with a current ratio 0.39 and an extremely high debt-to-equity 872.78, yet insider Max Izzard recently bought 25,000 shares at GBX 675, sending mixed signals to investors.

WH Smith (LON:SMWH - Get Free Report) had its price objective decreased by stock analysts at Royal Bank Of Canada from GBX 675 to GBX 650 in a report issued on Monday,Digital Look reports. The firm currently has a "sector perform" rating on the stock. Royal Bank Of Canada's target price points to a potential upside of 10.65% from the stock's previous close.

SMWH has been the topic of a number of other reports. Peel Hunt reiterated a "buy" rating and issued a GBX 800 target price on shares of WH Smith in a report on Friday, December 19th. Berenberg Bank cut their target price on WH Smith from GBX 700 to GBX 667 and set a "hold" rating on the stock in a report on Monday, January 19th. Three research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of GBX 832.17.

WH Smith Price Performance

Shares of SMWH opened at GBX 587.44 on Monday. WH Smith has a 12-month low of GBX 519 and a 12-month high of GBX 1,132. The business's fifty day moving average is GBX 618.68 and its 200 day moving average is GBX 644.08. The company has a quick ratio of 0.42, a current ratio of 0.39 and a debt-to-equity ratio of 872.78. The stock has a market cap of £732.51 million, a P/E ratio of -5.18, a P/E/G ratio of 2.65 and a beta of 1.00.

Insiders Place Their Bets

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

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.

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