SSP Group – a positive AGM Trading Update later this week will really help its shares, now 190.30p, average TP of 382p

Mark Watson-Mitchell
6 minutes ago
3 min read

Mark Watson-Mitchell – 19.01.2026

On Friday of this week, 23^rd January, I am looking forward to the £1.51bn-capitalised SSP Group (LON:SSPG) issuing a positive Trading Update, ahead of holding its AGM that day.

This group’s vision is to be the world’s best travel food and beverage company.

“Our purpose is to be the best part of the journey, and our focus is on making every journey taste better - bringing great food and welcoming hospitality to travellers across the globe.”

For its investors, SSP aims at delivering long-term sustainable growth and returns.

Since I featured this business seven weeks ago, its shares have risen nearly 20%, from 178p to 212.35p, before slipping back to the current 190.30p – from which level I do feel that they are ready for another run upwards, with possibly a good Update helping the push.

The Business

Globally, SSP is a leading operator of food and beverage outlets in travel locations, employing around 49,000 colleagues in around 3,000 units across 38 countries.

It specialises in designing, creating and operating a diverse range of food and drink outlets in airports, train stations and other travel hubs across six formats: sit-down and quick-service restaurants, bars, cafés, lounges, and food-led convenience stores.

Management Comment

Last month, when delivering the group’s Final Results, CEO Patrick Coveney stated that:

“While there remains a degree of macro-economic uncertainty across the world, our focus is on what we can control.

We have made an encouraging start to FY26, with LFL sales growth now positive in all regions and tracking at 4% year to-date for the group as a whole.

This early momentum, together with the specific actions that we are taking to deliver sustained improvements in profit, cash and return on capital, gives us increasing confidence in our prospects for the coming year.”

The Equity

There are some 800.84m shares in issue.

The leading holders are HSBC Private Bank (8.50%), Marathon Asset Management (8.29%), Artemis Investment Management (7.29%), Threadneedle Asset Management (5.57%), Schroder Investment Management (4.97%), Causeway Capital Management (3.79%), GIC Pte (3.18%), SEB Funds (2.76%), Franklin Templeton Fund Management (2.74%), The Vanguard Group (2.69%) and JP Morgan Asset Management (2.48%).

Analyst Views

Some 14 analysts follow the group, with the consensus average Target Price at 382p, while the lowest is 180p and with the highest set at 580p.

There is a real mix of opinions on the shares, however I cannot understand why UBS has a ‘neutral’ stance on the shares having recently raised its TP to 180p (170p).

Elsewhere, RBC has increased its Target Price on the shares to 210p (205p) as a ‘sector perform’.

Barclays has cut SSP to 'equal weight' (overweight) – with a price target of 220p.

Berenberg raises SSP price target to 230p (190p) - 'buy'.

Bank of America Global Research raised its Buy price objective to 231p (218p), while its analysts noted:

"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 £700m of buybacks) looks attractive given the Sept-27E PE of 10x and FCF yield of 10%."

Anna Barnfather, at Panmure Liberum, has the shares as a Buy, with a 300p Target Price.

She estimates sales to end-September this year of £3,779m (£3,639m), with £215.4m (£192.7m) in pre-tax profits, 13.7p (11.9p) earnings and a 4.8p (4.2p) dividend per share.

For 2027 she looks for £3,949m sales, £241.2m profits, 16.4p in earnings and a dividend of 5.7p per share, while her figures for 2028 show £4,113m sales, profits of £269.9m, and 18.8p in earnings with a dividend of 6.6p per share.

And finally, Citigroup now has a Buy price target of 350p (310p).

My View

These shares, at 190.30p, are under-rated and destined to move considerably higher.