Analyst Adela Dashian of Jefferies maintained a Hold rating on Scandic Hotels Group AB, with a price target of SEK80.00.
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Adela Dashian’s rating is based on a combination of factors affecting Scandic Hotels Group AB’s recent performance. The company’s second-quarter results showed mixed outcomes, with net sales aligning with expectations but adjusted EBITDA falling short due to calendar shifts, foreign exchange challenges, and non-recurring items from the previous year. Despite these setbacks, the company’s revenue per available room (RevPAR) and occupancy rates showed slight improvements, and free cash flow remained robust, aided by advance payments and reduced variable rent repayments.
Looking ahead, management anticipates a modest increase in occupancy and pricing in the third quarter, driven by strong bookings. Furthermore, the strategic acquisition of Dalata is expected to enhance Scandic’s market presence in Ireland and the UK. These factors contribute to a balanced outlook, justifying the Hold rating as the company navigates both opportunities and challenges in its operational environment.
According to TipRanks, Dashian is a 4-star analyst with an average return of 11.8% and a 64.94% success rate. Dashian covers the Consumer Cyclical sector, focusing on stocks such as Thule Group AB, MIPS AB, and Tomra Systems ASA.
In another report released on July 3, Morgan Stanley also maintained a Hold rating on the stock with a SEK79.00 price target.