Compagnie des Alpes: Stifel initiates coverage, says buy

(CercleFinance.com) - On Monday, Stifel initiated coverage of Compagnie des Alpes shares with a buy rating and a target price of E25 (cp: E14.
3, +3.5%), representing huge upside potential of 81%.

The broker stresses that the group, which operates three of the world's largest ski areas, should benefit from the drop in snow levels that is expected to hit lower-altitude resorts.

Regarding its leisure parks, Stifel praises the operator's "active" investment strategy, which it believes is enabling it to grow faster than the market while improving profitability.

The broker believes that CDA shares are currently "excessively" undervalued relative to their peers - and in absolute terms, a discount which it believes will be reduced with the better-than-expected results expected to be published by the company.


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