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WH Smith (SMWH) 362p

The company’s travel division, which has a strong footprint in Britain’s airports, continues to outperform the high street arm of the business. And the sale of BAA’s World Duty Free (WDF) business to Italian group Autogrill for a bigger than expected figure of £545 million – has led to speculation that a bid might emerge for WH Smith’s airport retailing assets.

Retail analyst Nick Bubb, of brokers Pali International, identifies Swiss airport operator Dufry and French counterpart Lagardère, both unsuccessful suitors for WDF, as potential bidders. And with a steady, defensive high street business providing support we suggest buying now to benefit from any potential interest.

ACTION: BUY WH Smith • Target 420p • Stop Loss 333p

TIME TARGET: 5 WEEKS