Accor: a buyer, UBS raises earnings estimates
(CercleFinance.com) - UBS has revised its estimates for the Accor Hotel Group to reflect recent events.
Maintaining its buy rating on the stock, analysts yesterday upped their 12-month target from 55 euros to 57.75 euros (+5%), meaning upside potential of over 20%.
The broker's report takes into account two main factors: firstly, the group's share buyback program of up to 1.35 billion euros, resulting from the partial sale of AccorInvest. Secondly, the Australian group Mantra has been integrated by the group, an acquisition that was announced in the autumn last year which should be finalised this quarter. As a result, the broker has increased its 2018 EPS estimate by approximately 9%, followed by approximately 20% for 2019.
In addition, UBS has not yet taken into account Mövenpick, an upmarket hotel group which Accor recently announced acquiring, and about which details are still lacking. UBS believes that the deal will enhance EPS at a single-digit rate that exceeds that of 2019.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
Maintaining its buy rating on the stock, analysts yesterday upped their 12-month target from 55 euros to 57.75 euros (+5%), meaning upside potential of over 20%.
The broker's report takes into account two main factors: firstly, the group's share buyback program of up to 1.35 billion euros, resulting from the partial sale of AccorInvest. Secondly, the Australian group Mantra has been integrated by the group, an acquisition that was announced in the autumn last year which should be finalised this quarter. As a result, the broker has increased its 2018 EPS estimate by approximately 9%, followed by approximately 20% for 2019.
In addition, UBS has not yet taken into account Mövenpick, an upmarket hotel group which Accor recently announced acquiring, and about which details are still lacking. UBS believes that the deal will enhance EPS at a single-digit rate that exceeds that of 2019.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.