Canaccord Genuity lowers target price on WH Smith

(Sharecast News) - Analysts at Canaccord Genuity cut their price target on WH Smith from 680p to 555p on Wednesday, after the retailer lowered profit guidance amid softer trading in North America and weaker passenger volumes across its travel estate. Canaccord Genuity said the WH Smith's update for the 14 weeks ended 6 June showed revenues up 5% with like‑for‑like growth of 2%, but noted a clear slowdown in recent weeks. North America LFL sales fell 1% for the period and 4% over the past seven weeks, while Air in the UK was hit by disruption to Middle East flight schedules and lower spend per passenger. Management has now guided for FY26 adjusted pre‑tax profit of £75m to £90m, down from April's £90m to £105m expectation.

The Canadian bank cut its FY26 profit forecast by around 17% to £76m, with similar downgrades across later years, while earnings per share estimates were reduced more sharply to reflect dilution from the £106m equity raise, which has strengthened the balance sheet and lowered expected FY26 net debt to about £320m.

Canaccord Genuity said North America remained under pressure, particularly at InMotion and Resorts, while restructuring of underperforming stores continued. However, it maintained its 'buy' rating, citing longer‑term global growth opportunities, but said the reduced target price reflected the weaker trading outlook and estimate revisions.







Reporting by Iain Gilbert at Sharecast.com