NEW YORK (dpa-AFX) - The prospect of an economic recovery could drive the shares of Sixt, according to analyst firm Jefferies. In a study published on Tuesday, expert Constantin Hesse upgraded the shares of the car rental company from "hold" to "buy" and increased the price target from 100 to 130 euros. The shares are currently trading at 114.50 euros.

The travel industry should prove more resilient than expected in 2023, Hesse wrote. Leading indicators are better than initially thought, he said, and continue to signal prices at a high level for the car rental sector, not least because of a still limited availability of vehicles.

Against this backdrop, sentiment has brightened noticeably recently, according to Hesse, if one compares the situation with that of a few weeks ago. Estimates for the economy have probably bottomed out.

In addition, according to Hesse, there has recently been good news for the industry from European airlines, among others. For example, the average load factor forecast for summer 2023 is higher than last year, he said. In addition, some pent-up demand is ensuring robust travel prospects this year as well, he said.

According to the World Tourism Organization, international tourist arrivals this year could reach 80 to 95 percent of pre-Corona pandemic numbers, driven primarily by Europe, the Jefferies expert continued. In 2022, the figure was still only 63 percent, he said.

In line with the "Buy" rating, Jefferies analysts expect the shares to achieve a total return (price gain + dividend) of at least 15 percent over a twelve-month period./la/bek/mis

Analyzing institute Jefferies.

Publication of the original study: 30.01.2023 / 12:30 / ET First circulation of the original study: 30.01.2023 / 19:01 / ET