Oddo BHF maintains its 'outperform' rating on Accor shares, with its target price raised from €42 to €45.
With Accor due to publish its results on February 22, Oddo BHF expects them to be 'very good', buoyed by strong leisure and business demand in almost all regions and high price levels.
We expect RevPAR growth of 21.2% (guidance >20%, consensus 22%), which implies +17% in our Q4 estimates, broadly in line with Q3 at +15%. Our EBITDA estimate of ME 990 is above the Group's guidance of ME 955/985 and in line with the consensus of ME 993', the analyst said.
Oddo BHF expects RevPAR growth to be in the +3/4% range in 2024, in line with the group's medium-term guidance, and will be supported by major summer events, notably the Olympic Games in Paris.
'Overall, our EPS sequence is raised by 6% on average over 2023/2025e', says the broker.
Copyright (c) 2024 CercleFinance.com. All rights reserved. The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.
Accor is the No. 1 European hotel group. Net sales break down by activity as follows:
- operating hotels under management contract (74.7%; HotelServices);
- owned and leased hotel management (25.3%). In addition, the group offers a business of renting luxury private residences, as well as providing digital services to independent hoteliers, concierge services, etc.
At the end of 2023, the group operates a network of 5,584 hotels (821,518 rooms) distributed primerly between luxury and top-range hotels (978 hotels; Raffles, Fairmont, Sofitel, Pullman, MGallery, Swissotel, Grand Mercure, Mövenpick, The Sebel and Rixos names), mid-range hotels (1,732; Novotel, Novotel Suites, Mercure, adagio, Mama Shlter and Tribe), and economy hotels (2,826; ibis, ibis Styles, ibis budget, adagio access, hotelF1, Formule 1, Jo&Joe, Breakfree and Greet).