When a company fails, another often swoops in to pick up the pieces. Premier Inn owner Whitbread has been a big beneficiary in the pandemic-driven contraction in the UK’s independent hotel market. On the high street, meanwhile, the fall into administration of discounter Wilko in August has led analysts to upgrade their forecasts for a growing FTSE 100 retailer that is available at a reasonable price.
- Analyst upgrades
- Big market share opportunity
- Inventory discipline
- Resilient margins
- High net debt
- Exit of long-term CEO
Step forward B&M European Value Retail (BME), the listed winner from Wilko’s demise, which this month confirmed that it would acquire 51 Wilko stores for up to £13mn. This prompted some bullish reviews from analysts. Liberum argued that the move could add at least 5 per cent to B&M’s annualised cash profits, while Shore Capital upgraded its rating to a buy and pushed up revenue forecasts for 2025 and 2026 by 3 per cent and 6 per cent, respectively.