Jaina Mistry, an analyst from Jefferies, maintained the Buy rating on Accor SA (0H59 – Research Report). The associated price target was lowered to €55.00.
Jaina Mistry’s rating is based on several compelling factors. Accor SA is expected to demonstrate strong revenue per available room (RevPAR) performance in the first quarter, continuing its positive momentum from January and February. This growth is evident across most countries, despite some exceptions like the UK and Germany.
Additionally, the company is poised for a potential re-rating as it is anticipated to outperform its peer, IHG, in terms of net unit growth (NUG) and RevPAR by 2025. Accor SA is also planning to return over 20% of its market capitalization to shareholders within two years, which is an attractive proposition for investors. Furthermore, the stock is currently trading at a 12% price-to-earnings discount compared to IHG, which historically traded at a 14% premium, suggesting a potential undervaluation and investment opportunity.