SSP Group Shares Jump As UBS Upgrades to Buy on Cash Flow Strength

SSP Group shares (LON:SSPG) jumped 6.17% to 201.20p this morning following a significant upgrade from UBS, which elevated the travel food and beverage operator to Buy from Neutral and raised its price target from 180 GBp to 245 GBp.

The upgrade, delivered by UBS analyst Ivar Billfalk-Kelly, cited the company's robust cash flow generation and ongoing share buyback programme as key drivers behind the improved outlook.

The market response underscores growing confidence in SSP Group's financial trajectory, with the stock now trading at levels that reflect renewed optimism about its ability to generate shareholder returns.

The UBS price target of 245 GBp suggests potential upside of approximately 22% from current levels, positioning the stock as an increasingly attractive proposition for value-oriented investors.

Capital Allocation and Shareholder Returns

SSP Group has been actively deploying capital to reward shareholders through a £100 million buyback programme. By mid-December 2025, the company had repurchased over 10 million shares, reducing the total share count to approximately 794.3 million. This capital allocation strategy signals management's confidence in the business fundamentals and its commitment to enhancing returns, particularly as cash generation continues to strengthen across its global portfolio of airport and rail station food outlets.

The UBS upgrade arrives amid a broader consensus shift among analysts covering the stock. As of mid-February 2026, SSP Group holds a Moderate Buy rating from six brokerages, comprising four Buy ratings and two Hold ratings. The average 12-month price target stands at 244.50 GBp, closely aligned with UBS's newly elevated target and indicating that analyst sentiment has coalesced around a positive view of the company's prospects.

Berenberg Bank reinforced this outlook in January 2026, reiterating its Buy rating with a 230 GBp price target. The convergence of analyst opinion reflects growing appreciation for SSP's operational improvements and strategic positioning within the travel retail sector, which continues to benefit from sustained passenger volume recovery across global transport hubs.

Recent Performance Supports Move

Financial performance has provided solid underpinning for the bullish analyst calls. In December 2025, SSP Group reported fiscal year 2025 revenue of £3.64 billion, up 6% year-on-year, while underlying operating profit climbed 8.4% to £223 million.

Earnings per share rose 19% to 11.9 pence, demonstrating operational leverage as the business scales. Management also announced a strategic review of its Continental European rail business to address underperformance, a move that markets have interpreted as proactive capital discipline.

With cash flow generation strengthening, buybacks reducing the share count, and analyst upgrades providing momentum, SSP Group appears to be entering a phase where operational improvements are translating into tangible shareholder returns. The stock's performance today reflects markets pricing in this improved outlook, with further upside contingent on continued execution and sustained travel demand.