Accor: Barclays upgrades stock
(CercleFinance.com) - On Monday Barclays upgraded Accor shares to "overweight" from "equal weight", having increased its target price for them from 29 euros to 36 euros, explaining that it expects pleasant surprises in the hotel group's performance.
The analyst notes that Accor has benefited from favourable pricing trends in Q4, with prices rising by 8% in real terms, while InterContinental Hotels Group (IHG) saw its prices fall by around 1%.
After ten years of significant underperformance, due in part to issues surrounding the use of cash and lower shareholder returns than its US peers, Accor may now be at a turnaround Barclays says.
While the group has set a target of 5% to 9% growth in revenue per available room (RevPAR), it could well post 20% growth this year if it manages to pass on the rise in inflation, it adds.
In this context, aside from this upgrade, the broker downgraded its rating on InterContinental shares to "equal weight".
Copyright (c) 2023 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.
The analyst notes that Accor has benefited from favourable pricing trends in Q4, with prices rising by 8% in real terms, while InterContinental Hotels Group (IHG) saw its prices fall by around 1%.
After ten years of significant underperformance, due in part to issues surrounding the use of cash and lower shareholder returns than its US peers, Accor may now be at a turnaround Barclays says.
While the group has set a target of 5% to 9% growth in revenue per available room (RevPAR), it could well post 20% growth this year if it manages to pass on the rise in inflation, it adds.
In this context, aside from this upgrade, the broker downgraded its rating on InterContinental shares to "equal weight".
Copyright (c) 2023 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.