Jefferies analyst Jaina Mistry has reiterated their bullish stance on 0H59 stock, giving a Buy rating on April 22.
Jaina Mistry’s rating is based on several positive indicators for Accor SA. The company reported a strong first quarter, with revenue per available room (RevPAR) and sales slightly surpassing consensus expectations, despite a minor miss in net unit growth (NUG). The company anticipates that new openings will be more heavily weighted towards the second half of the year. Although the outlook commentary has become more cautious compared to previous expectations, the company’s execution remains on track, with notable growth in RevPAR.
Jaina Mistry sees potential for a medium-term re-rating of the stock, driven by the advantages of Accor’s geographic diversification and luxury market exposure. Additionally, there is an expectation that NUG will improve to around 4%, and the company could deliver substantial shareholder returns, potentially returning over 20% of its market capitalization to shareholders within two years. Despite trading at a discount compared to peers, such as IHG, the combination of these factors supports the Buy rating for Accor SA.
In another report released on April 22, Bernstein also maintained a Buy rating on the stock with a €57.20 price target.