Deutsche Bank announced on Tuesday that it had raised its price target for Accor from €40 to €46, while maintaining its buy recommendation on the stock.
In a research note published this morning, the analyst described the group as "stronger than expected" and "increasingly attractive", following last week's better-than-expected 2023 annual results.
Deutsche recalls that the hotel giant unveiled a record operating profit Ebitda, in excess of one billion euros, a performance well above the 955 to 985 million euro range that the group had set itself as a target, and the consensus, which had been set at 992 million euros.
In addition, the dividend will be raised by 12.4% to 1.18 euros per share, adds the intermediary, who also notes the launch of a new 400 million euro share buyback program for this year.
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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).