SSP Group Shares Offer ‘Attractive Exposure’ to the US Market Says Analyst

SSP Group (LON:SSPG) has garnered renewed attention from analysts, with Berenberg upgrading the stock to a “Buy” rating from “Hold.” This positive shift is largely attributed to the company's promising presence in the U.S. market and its “fast-growing” operations in India. Berenberg set a price target of 190 GBp, a slight increase from their previous target of 180 GBp.

The upgrade arrives amidst mixed sentiment from other firms. JPMorgan lowered its price target on SSP Group to 190 GBp from 200 GBp, maintaining a “Neutral” rating. BNP Paribas Exane downgraded the stock to “Underperform” with a price target of 180 GBp, citing concerns over the company's free cash flow yield potentially remaining stagnant in 2026. Citi offered a more bullish perspective, raising its price target to 330 GBp from 320 GBp while keeping a “Buy” rating. Conversely, UBS downgraded SSP Group to “Sell” from “Neutral,” setting a price target of 170 GBp, up from 165 GBp, expressing concern about downward capacity revisions and potential downside risks to consensus estimates.

This divergence in analyst opinions creates a complex picture for investors. Berenberg's optimism hinges on SSP Group's expansion and performance within the U.S. and Indian markets, suggesting these regions could be key growth drivers in the near future. The U.S. market, in particular, is seen as offering significant opportunities for SSP Group to increase its revenue and market share.

However, the concerns raised by BNP Paribas Exane regarding future cash flow and by UBS about capacity revisions cannot be ignored. These factors introduce an element of risk that investors should carefully consider. A flatlining free cash flow yield could limit the company's ability to invest in future growth or return capital to shareholders, while capacity revisions may signal underlying challenges in demand or operational efficiency.

The mixed signals suggest that SSP Group's future performance may depend heavily on its ability to capitalize on opportunities in the U.S. and India while effectively managing potential headwinds in other areas of its business. The wide range of price targets, from UBS's 170 GBp to Citi's 330 GBp, reflects the uncertainty surrounding the company's prospects.

Bull Case:

• US Market Expansion: Berenberg highlights the “attractive exposure” to the U.S., indicating significant growth potential in this region.
• Indian Growth: The “fast-growing” Indian market is another key driver for SSP Group's future performance.

Bear Case:

• Cash Flow Concerns: BNP Paribas Exane's concerns over flatlining free cash flow yield in 2026 present a potential challenge.

The upgrade from Berenberg could provide a short-term boost to SSP Group's share price, with shares ending the day up 0.45%. However, investors should be aware of the conflicting opinions from other analysts and the potential risks associated with cash flow and capacity revisions.