Expectations are rising that leisure group Whitbread could sell its Costa Coffee chain.
Barclays Capital analysts claim that Whitbread shares could be worth as much as 40% more if the group was able to sell off Costa Coffee and hotel real estate assets.
Along with coffee shops and hotels, it also owns the UK´s Premier Inn hotel network and operates through various restaurant brands.
Barclays Capital, however, continues to adopt a neutral stance on the shares for now as it cites continued headwinds for UK consumers.
While Whitbread shares are little changed over the past year, the stock rose by the most in eight years in early December on news that activist investor Sachem Head Capital Management had acquired 3.4% of the company.
Barclays believes the appearance of Sachem as a major shareholder makes it more likely that Whitbread will spin off key assets such as Costa.