WH Smith (LON:SMWH) Given New GBX 680 Price Target at Canaccord Genuity Group

Key Points

• Analysts: Canaccord cut its price target from GBX 762 to GBX 680 but kept a "buy" rating — the firm still sees ~20.25% upside, while the consensus rating is a Moderate Buy with an average target of GBX 720.50.
• Earnings and cash concerns: WH Smith reported GBX (20) EPS with a negative net margin (~-9%) and large negative ROE, and management has suspended the dividend, raising debt and profitability risks amid travel disruption.
• Market reaction and insider activity: Shares recently traded at GBX 565.50 (down ~1%) with volume far above average, while insider Max Izzard purchased 25,000 shares at GBX 675, leaving insiders owning about 1.03% of the stock.

WH Smith (LON:SMWH - Get Free Report) had its target price lowered by stock analysts at Canaccord Genuity Group from GBX 762 to GBX 680 in a research report issued on Friday,Digital Look reports. The firm currently has a "buy" rating on the stock. Canaccord Genuity Group's price objective points to a potential upside of 20.25% from the stock's current price.

Several other analysts have also issued reports on SMWH. Royal Bank Of Canada cut their price objective on WH Smith from GBX 675 to GBX 650 and set a "sector perform" rating for the company in a report on Monday, April 13th. Berenberg Bank dropped their target price 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 analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat.com, WH Smith presently has a consensus rating of "Moderate Buy" and a consensus price target of GBX 720.50.

WH Smith Stock Down 1.0%

WH Smith stock traded down GBX 5.50 during trading hours on Friday, hitting 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 has a market capitalization of £705.15 million, a P/E ratio of -4.99, a price-to-earnings-growth ratio of 2.65 and a beta of 1.00. 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 firm's fifty day moving average is GBX 606.89 and its 200-day moving average is GBX 640.88. WH Smith has a fifty-two week low of GBX 519 and a fifty-two week high of GBX 1,132.

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

Insider Activity at WH Smith

In other WH Smith news, insider Max Izzard purchased 25,000 shares of the company's stock in a transaction dated Thursday, January 29th. The shares were bought at an average price of GBX 675 per share, for a total transaction of £168,750. 1.03% of the stock is currently owned by company insiders.

WH Smith News Roundup

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.

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