Shares digital

Retail group WH Smith (SMWH) is not due to issue its trading update until its AGM on 31 January but Nick Bubb of Pali International believes that the group is ‘unlikely to disappoint.’

The AGM will almost certainly be followed by an earnings enhancing 15% share buyback. Bubb believes that the group is ‘an interesting M&A target’ given the strength of the travel division, especially the airport shops. He has a sum-of-the-parts value of 415p, 28% above the current 324.5p price.

Shares says: Good news expected and a potential target. JM

The writer holds shares in this company