SSP Group plc (LSE:SSPG)’s acquisition of Airport Retail Enterprises (ARE) in Australia should add 3% to group revenue and give it entry into four new airports in the country, says broker Jefferies,
Post completion, SSP will operate around 100 units across 11 of the largest 19 airports in Australia.
It’s a move consistent with Uppercrust owner SSP's strategy, adds the broker, and allied to strong underlying trading and M&A upside builds more confidence in the investment case.
A more than 20% discount to its pre-COVID PE multiple does not reflect the enlarged opportunities and a higher revenue growth rate.
'Buy' with a target price of 340p is Jefferies' investment view.