Accor SA (0H59 – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Jaina Mistry from Jefferies reiterated a Buy rating on the stock and has a €55.00 price target.
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Jaina Mistry’s rating is based on a strong performance by Accor SA in FY24, where sales exceeded expectations by 2% and net profit surpassed forecasts by 4%. The company’s commitment to shareholder returns is evident with buybacks for FY25 projected at €440 million, which is higher than previous guidance and expected to positively impact earnings per share.
The investment thesis is further supported by Accor’s geographic diversification and luxury market exposure, which are poised to deliver significant benefits. Additionally, the company has demonstrated strong execution with notable metrics such as a 3.5% Net Unit Growth and a 5.7% increase in Revenue Per Available Room. These factors, combined with the potential for substantial shareholder returns, underpin the Buy rating, despite trading at a 16% discount compared to peers like IHG.
In another report released on February 14, UBS also maintained a Buy rating on the stock with a €61.45 price target.