Accor: Oddo reduces target price

(CercleFinance.com) - While renewing its "outperform" rating on the Accor stock, Oddo has shaved a euro off its corresponding target price from 38 euros to 37 euros.


Last night, the hotel group announced Q1 revenues of 361 million euros, down 53% in organic terms and 7% below expectations (389 million euros).

With RevPAR - revenue per available room - down 64% in the first quarter at HotelServices, Accor is suffering from continuing severe restrictions in most geographic areas, Oddo says.

Despite a health context that remains very difficult in the near term, Accor should continue to benefit from newsflow relating to the vaccine and the expected reopening of borders around the summer period, the analyst believes.

From this year Accor should therefore benefit from the expected recovery in travel in Europe, and then internationally, it says. The broker also adds that the group has solid fundamentals, including a healthy balance sheet (3.6 billion euros in cash) and a cost-savings plan aimed at accelerating the recovery of margins.



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