Accor: still a buyer, BarCap raises target price
(CercleFinance.com) - Maintaining their buy rating ("overweight") on the Accor stock, BarCap analysts have raised their corresponding target price from 47 euros to 50 euros (+6.
3%). Analysts say that the market is underestimating the potential of the "new Accor".
"Accor remains our preferred hotel pick," a research report states. The first argument is that: " We expect the HotelInvest deal (partial disposal, ed) to close imminently". This should make the new Accor "a scarce entity" interesting new long-term investors because of its "asset light" business model (few real estate assets and low debt).
As Accor is (80%) exposed to the cyclical recovery in Europe and Asia, analysts believe that this should improve its operating income by between 12% and 23% p.a. on average. BarCap also believes that HotelServices, the group's hotel division, as opposed to HotelInvest, is trading at a 13% discount relative to its peer InterContinental Hotels Group (IHG), even though it has a better earnings outlook.
Copyright (c) 2018 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.
3%). Analysts say that the market is underestimating the potential of the "new Accor".
"Accor remains our preferred hotel pick," a research report states. The first argument is that: " We expect the HotelInvest deal (partial disposal, ed) to close imminently". This should make the new Accor "a scarce entity" interesting new long-term investors because of its "asset light" business model (few real estate assets and low debt).
As Accor is (80%) exposed to the cyclical recovery in Europe and Asia, analysts believe that this should improve its operating income by between 12% and 23% p.a. on average. BarCap also believes that HotelServices, the group's hotel division, as opposed to HotelInvest, is trading at a 13% discount relative to its peer InterContinental Hotels Group (IHG), even though it has a better earnings outlook.
Copyright (c) 2018 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.