ACCOR : JPMorgan sees value, raises its recommendation
November 29, 2024 at 10:20 am EST
Share
On Friday, JPMorgan raised its recommendation on Accor shares from 'neutral' to 'overweight', with a price target raised from 44 to 54 euros.
Although the intermediary initially expressed skepticism about the hotel group's strategic plan unveiled last year, he acknowledges that the company has undeniably made progress since then.
From his point of view, the group's diversified geographical exposure - as well as its positioning at the top end of the market - have proved to be profitable and "defensive" choices.
According to the analyst, this "mix" should enable it to outperform its competitors by generating higher growth in revenue per available room (RevPAR) than its rivals.
JPMorgan says it sees other catalysts likely to trigger a share price recovery, such as a sale of AccorInvest or further indications of the next CEO, while the stock is still trading at a discount of around 40% to its peers.
Alongside Whitbread, Accor is one of its recommended 'strong buy' stocks ('convictions') within the hotel sector.
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).