Accor: a buyer, BarCap still targets 50 euros
(CercleFinance.com) - In response to the information from the Financial Times (FT) that Accor could, by 21 February, announce the result of the flotation of HotelInvest, Barclays Capital (BarCap) this morning confirms its buy rating on the French hotel group, maintaining its target price at 50 euros.
According to the FT, five investors, including the French players (Amundi, Predica) and emerging sovereign funds could be interested in taking a majority stake Accor's real estate subsidiary. The article suggests that the gross value of the assets put up for sale would be around 6.6 billion euros, the broker's report says. "We expect six billion euros," BarCap states, while the consensus provided by the company (and quoted by BarCap) is for about 6.1 billion euros.
Until further clarification, the broker considers this news as encouraging (...) after a disposal process that has already lasted for over 18 months.
More generally, BarCap says that it distinguishes Accor due to its business model that is as "rare" as it is less capital intensive, thanks to the aforementioned transaction, as well as its exposure to the growth in Europe and Asia. The Accor share is also considered as more attractive than that of InterContinental Hotels Group (IHG), as it is trading at a discount of 11% despite greater expected growth in operating income.
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.
According to the FT, five investors, including the French players (Amundi, Predica) and emerging sovereign funds could be interested in taking a majority stake Accor's real estate subsidiary. The article suggests that the gross value of the assets put up for sale would be around 6.6 billion euros, the broker's report says. "We expect six billion euros," BarCap states, while the consensus provided by the company (and quoted by BarCap) is for about 6.1 billion euros.
Until further clarification, the broker considers this news as encouraging (...) after a disposal process that has already lasted for over 18 months.
More generally, BarCap says that it distinguishes Accor due to its business model that is as "rare" as it is less capital intensive, thanks to the aforementioned transaction, as well as its exposure to the growth in Europe and Asia. The Accor share is also considered as more attractive than that of InterContinental Hotels Group (IHG), as it is trading at a discount of 11% despite greater expected growth in operating income.
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.