RBC Downgrades WH Smith, Target 650p

RBC cut WH Smith’s price target to 650p, downgrading rating to “sector perform” from “outperform”.
FY26 pre‑tax profit forecast trimmed to £99 million, 3‑4% lower than prior outlook and 6% below consensus.
RBC cites weaker UK employment, rising mortgage rates from Iran conflict, higher air fares and new high‑fat food rules as downside risks.
Temporary closure of Heathrow Terminals 3‑5 stores and Middle East store shutdowns add pressure, but US travel remains resilient.