SSP Group Shares: These Analysts See Challenges Ahead

SSP Group (LON: SSPG) shares have come under sustained pressure in recent weeks, falling 9.7% over the past month. The stock is down almost 9% since the start of the year, but is up more than 4% over the past 12 months.

Several brokerages have turned more cautious in recent weeks. 

JPMorgan lowered its price target to 190 pence from 200p and maintained a neutral rating on the stock in a recent note to clients. 

Analyst Harry Gowers cited a more tempered outlook for the travel food and beverage operator.

Meanwhile, BNP Paribas Exane downgraded the stock to underperform from neutral, setting an 180p target. 

Analyst Jaafar Mestari noted that expectations for the free cash flow yield to stagnate by 2026 could impact the stock.

UBS also moved to a more bearish stance in July, cutting its rating for SSPG to sell from neutral. 

It lifted its price target slightly to 170p from 165p, but analyst Ivar Billfalk-Kelly warned that downward revisions to capacity forecasts suggested more challenging months ahead and potential downside risk to consensus estimates.

However, not all sentiment is negative. At the end of July, Citi raised its price target to 330p from 320p and kept a buy rating.

According to TradingView data, the consensus price target from 14 analysts stands at 228.6p, implying a potential upside of 37.3% from current levels. 

Still, the recent downgrades highlight investor concern over SSP Group’s operating environment, particularly as cost pressures continue to shape demand.