Deutsche Bank hikes target price on Whitbread following UK budget

(Sharecast News) - Deutsche Bank hiked its target price on Whitbread on Thursday, raising it from 2,530p to 2,730p and reiterating its 'hold' rating after the UK budget introduced a new real‑terms cap on business rate increases for parts of the retail, hospitality and leisure sector. The broker said hotels had faced a disproportionate jump in rateable values in 2026 - more than 100% - creating a significant earnings headwind for Whitbread and its peers. It highlighted that the increase was the single biggest factor behind guidance being downgraded and a key drag within the group's five‑year plan.

Deutsche Bank noted that the government's new cap on business rate rises for qualifying RHL properties was unexpected and could ease some of that pressure. However, it also flagged ambiguity in the budget documents over what "qualifying" means. If eligibility is restricted to properties with rateable values below £500,000, a number of larger Premier Inns would likely be excluded, limiting the benefit for Whitbread.

Even so, Deutsche Bank said the measure improves visibility on future cost inflation and supports its upgraded forecasts, prompting the target‑price increase.



Reporting by Iain Gilbert at Sharecast.com