NH Hoteles: share up 7%, on planned merger with Barcelo.
(CercleFinance.com) - The NH Hoteles is continuing to rise this morning, increasing 7% (after rising 11% yesterday) after announcing yesterday that it has received an offer merger to merge with Barcelo Hotels, which has offered to bring its assets to NH prior to a merger by absorption.
Broker Oddo has confirmed its Buy recommendation on the stock, with a target price of 6.70 euros. In its daily research report, Oddo says that the share has several catalysts, including: i/ operational leverage due to its highly cyclical nature; ii/ the group's new strategy to strengthen profitability iii/ asset management and iv/ speculative appeal.
We understand that NH will launch a capital increase reserved for Barcelo in return for the contributions. The new entity will be 60%-owned by the shareholders of Barcelo Hotels (which will represent the majority of the board) and will remain listed, with Barcelo hoping to avoid a mandatory takeover bid," Oddo says.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
Broker Oddo has confirmed its Buy recommendation on the stock, with a target price of 6.70 euros. In its daily research report, Oddo says that the share has several catalysts, including: i/ operational leverage due to its highly cyclical nature; ii/ the group's new strategy to strengthen profitability iii/ asset management and iv/ speculative appeal.
We understand that NH will launch a capital increase reserved for Barcelo in return for the contributions. The new entity will be 60%-owned by the shareholders of Barcelo Hotels (which will represent the majority of the board) and will remain listed, with Barcelo hoping to avoid a mandatory takeover bid," Oddo says.
Copyright (c) 2017 CercleFinance.com. All rights reserved.