Here’s How SSP Shares Could Hit 300p

SSP Group’s (LON: SSPG) shares could climb above 300p over the next 12 to 18 months if the company executes on a multi-year profit and cash-generation plan outlined by Shore Capital. 

The broker said SSP’s better-than-expected FY25 results in December provided a stronger base for earnings growth in FY26 and beyond, supporting improved returns and higher shareholder payouts.

Shore Capital, which acts in an advisory capacity to SSP, believes the results helped clear “pessimism” from the share price but argued that the current valuation, around 14 times forward earnings with a free cash flow yield of about 7 percent, still fails to reflect the long-term appeal of the global travel sector. 

The firm set out a roadmap showing how SSP could lift earnings per share to roughly 30p over five years, driven by profit initiatives worth about £40 million, including overhead reductions, margin improvements in Continental Europe and steady underlying revenue growth.

Like-for-like sales rose 4 percent at the start of FY26, ahead of the broker’s full-year assumption of 3 percent, with easier comparatives expected in the second half. Return on capital employed improved to 18.7 percent in FY25 and is on track to surpass 20 percent, supported by progress toward the company’s 5 percent margin target in Europe.

Shore Capital expects FY26 to be a key year for cash generation, forecasting £103 million in underlying free cash flow. With a £100 million share buyback already underway and further returns possible, the broker said SSP could distribute £300 million over three years. 

It added that continued buybacks and a potential partial sale of the firm’s stake in the Indian joint venture TFS could help drive EPS above 30p, supporting a rerating of the shares to more than 300p.