Broker's note: WH Smith
Credit Suisse has increased its target price on WH Smith following the group¬ís Q3 results on Monday (June 8).
The broker has upped its target from 430p to 480p on the back of its belief that WH Smith has moved from recovery to a growth strategy via extension and expansion of its travel retail division.
Credit Suisse suggests this gives the company better earnings growth prospects than many highly rated stocks in the retail sector. Its travel business is predicted to overtake its high street stores division in earnings during the current year. The increase in the target price puts WH Smith on a multiple of 12x 2008/9 earnings.
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