SSP Group Price Target Raised as BofA Highlights Trading Improvement, 'Attractive' Valuation

10:22 AM EST, 12/09/2025 (MT Newswires) -- BofA Global Research raised its price objective for SSP Group (SSPG.L), noting that the UK-based travel food and beverage operator's valuation remains "attractive," with its fiscal 2025 results meeting expectations. The price target was increased to 2.31 pounds sterling from 2.18 pounds on Monday, while the stock's buy rating was reaffirmed. "We continue to see SSP as a deep value, self-help, cash flow improvement story. The FY25 results, actions planned by management into 2026 and beyond plus an uptick in trading all help de-risk our estimates which are broadly unchanged. A 5 year EPS CAGR of 21% (underpinned by GBP700m of buybacks) looks attractive given the Sept-27E PE of 10x and FCF yield of 10%," analysts said. The research firm forecasts a revenue compound annual growth rate of 4.5% over the fiscal 2025 to 2030 period and 80% to 90% in free cash flow conversion by fiscal 2030 despite the group facing profitability challenges in its European operations.