Accor: growth underappreciated, BarCap says.
(CercleFinance.com) - According to analysts at Barclays Capital (BarCap), the market is underappreciating Accor's growth potential, as well as other catalysts such as the partial sale of HotelInvest.
Maintaining its buy ("overweight") rating on the hotel group's stock, analysts have raised their target price from 42 euros to 47 euros.
"We think the market is under-appreciating the faster growth potential of Accor," BarCap says. "We expect this to change following the sale of HotelInvest,” the group's real estate division, which is currently being floated on the market.
BarCap estimates that Accor will report average annual growth in operating income of 9%, compared with 6% for Intercontinental Hotels Group (IHG). This is the same as RevPAR - revenue per room - a key indicator in the sector: on average, analysts expect about a 2% increase in Accor's RevPAR p.a., against under 1% for IHG. And this is while Accor is trading at a 2018 EV/EBITDA multiple of 12x, while IHG is trading at 13.2x.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
Maintaining its buy ("overweight") rating on the hotel group's stock, analysts have raised their target price from 42 euros to 47 euros.
"We think the market is under-appreciating the faster growth potential of Accor," BarCap says. "We expect this to change following the sale of HotelInvest,” the group's real estate division, which is currently being floated on the market.
BarCap estimates that Accor will report average annual growth in operating income of 9%, compared with 6% for Intercontinental Hotels Group (IHG). This is the same as RevPAR - revenue per room - a key indicator in the sector: on average, analysts expect about a 2% increase in Accor's RevPAR p.a., against under 1% for IHG. And this is while Accor is trading at a 2018 EV/EBITDA multiple of 12x, while IHG is trading at 13.2x.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.