Berenberg announced on Thursday that it had raised its price target for Accor from €41.2 to €45, while maintaining its Buy rating on the stock.
According to the analyst, the French group is well placed to benefit from the structural growth drivers driving the hotel sector over the long term, namely a contraction in the supply of available rooms, which should support an increase in revenue per room (RevPAR) over the medium term.
From his point of view, the annual results published by the company have reinforced his confidence in the value, as has the announcement of larger-than-expected share buybacks, a measure which he believes could be sustained over time.
With its well-diversified portfolio, both geographically and in terms of ranges, we still expect Accor to enjoy above-market growth and to make progress towards its medium-term objectives," he concludes.
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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).