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Analyst Ratings February 17, 2026

UBS Elevates SSP Group to Buy, Cites Sharper Cash-Flow Trajectory

Analyst lift follows evidence of stronger free cash flow and recent operational momentum

By Maya Rios SSPPF
UBS Elevates SSP Group to Buy, Cites Sharper Cash-Flow Trajectory
SSPPF

UBS has raised its rating on SSP Group Plc. to Buy from Neutral and increased its price target to GBP2.45 from GBP1.80, flagging an improved outlook for cash generation and several potential upside catalysts alongside recently reported stronger financial results for the second half of 2025. The bank projects material free cash flow growth through 2030 and points to a shrinking minority profit share, completed catch-up capital expenditure and tighter working capital management as drivers of the improvement.

Key Points

  • UBS upgraded SSP Group to Buy from Neutral and raised its price target to GBP2.45 from GBP1.80, implying roughly 22% upside.
  • UBS highlighted an improved cash generation outlook driven by a lower minority profit share, completed catch-up capex and tighter working capital management, and forecasts free cash flow of in fiscal 2026 and in fiscal 2030.
  • SSP reported stronger second-half 2025 results: EPS up 25% to 12.5 pence, revenue up 8% to and a proposed full-year dividend increase of 20% to 4.2 pence per share.

UBS has upgraded SSP Group Plc. (tickers: SSPG:LN and OTC: SSPPF) to Buy from Neutral and lifted its price objective to GBP2.45 from GBP1.80 - a target UBS says implies roughly 22% upside from current levels.

The broker highlighted a shift in the company’s cash generation outlook as central to the upgrade. UBS said that, if SSP successfully executes on its increasingly cash-focused agenda, that would address a main market concern: the gap between revenue and profit growth and meaningful cash conversion. Supporting that view, InvestingPro data cited by UBS shows SSP produced a strong free cash flow yield of 35% over the last twelve months.

UBS pointed to several specific elements underpinning the improved cash view. The share of profits attributable to minority interests has declined; the company has moved past a period of catch-up capital expenditure; and management is placing greater emphasis on working capital control. Based on these assumptions, UBS forecasts free cash flow of

Recent operational signals also featured in UBS commentary, with increasing aviation capacity growth cited as a tailwind for near-term organic expansion.

UBS also flagged potential upside catalysts that could translate into further value recognition: the prospect of additional share buybacks, the ongoing review of the companys European Rail operations, and the possibility of crystallising value from its Indian operations.

Separately, SSP Group reported robust second-half 2025 results. Earnings per share rose 25% to 12.5 pence and revenue increased 8% to

The company also proposed a full-year dividend increase of 20% to 4.2 pence per share. UBS and market observers have taken these results and the dividend proposal as positive signs, with investor sentiment reported to have warmed in response to the stronger performance and the improved outlook.

What to watch next

  • Execution of the companys cash-focused initiatives and whether free cash flow meets UBSprojections.
  • Trajectories for aviation capacity that could support near-term organic revenue growth.
  • Outcomes from the European Rail review and any moves to unlock value in Indian operations, including potential share buybacks.

Risks

  • The upgrade depends on successful execution of SSPs cash generation plan; failure to convert revenue and profit growth into the forecasted cash flows would undermine the outlook. This impacts equity investors and credit stakeholders.
  • Near-term organic growth is partly tied to increasing aviation capacity; if aviation capacity growth weakens, revenue momentum may be less supportive. This affects travel, leisure and airport concession sectors.
  • Potential upside from buybacks, the European Rail review or value crystallisation in India is uncertain; outcomes of those processes are not guaranteed and could limit value realisation for shareholders.

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