Accor: JPMorgan downgrades stock

(CercleFinance.com) - On Thursday JPMorgan downgraded Accor shares from "neutral" to "underweight", while slashing its target price for them from 35.
5 euros to 21 euros, representing downside potential of 10%.

In its morning comments, the broker explains that the reasons behind its caution now outweigh the group's qualities (strength of brands, possibility of value creation).

They have three concerns: (1) a business profile that they believe is less defensive than that of their peers, (2) the risk of a downward revision of market forecasts and (3) a valuation premium of around 15% over Intercontinental Hotels Group and Whitbread, which they believe is unjustified and difficult to maintain.

The stock is indeed snubbed by investors this morning - down almost 8% in late morning trading.



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