Accor: Oddo adjusts target price

(CercleFinance.com) - Oddo expects RevPAR growth of 2.
1% in 2019, suggesting 0.6% in Q4, after 0.7% in Q3.
The broker believes that the trends already seen in Q3 will continue.

Analysts anticipate EBITDA of 831 million euros, in the middle of the tightened guidance range of 820 million/840 million euros (consensus 829m euros). Finally, they expect recurrent FCF of 434 million euros in 2019e and a dividend of 1.06 euro (just one cent above the 1.05 euro in 2018).

They say that there is still little visibility in 2020: a more cautious view of RevPAR, excluding Asia-Pacific, with RevPAR set to increase in the main areas where Accor operates.

For the group as a whole, analysts expect RevPAR to increase by 0.5% in 2020e and say that they have cut their EBITDA estimates by 5% to 846 million euros in 2020e (vs. consensus 850 million euros).

Oddo confirms its Buy rating on the stock, while shaving one euro off its target price to 45 euros (against 46 euros) - this means almost 17% upside potential.



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