Analyst Jaina Mistry of Jefferies maintained a Hold rating on Dalata Hotel (DAL – Research Report), retaining the price target of €5.10.
Jaina Mistry’s rating is based on the recent performance and strategic developments of Dalata Hotel Group. The company’s financial results for FY24 were largely in line with expectations, showing a slight beat in EBITDA but a small miss in net profit. The positive trading in the first quarter, with a 2.5% increase in RevPAR, indicates a stable start to the year.
Additionally, the announcement of a strategic review and potential asset disposal suggests a possible revaluation of the company, though no offers have been received yet. The external valuation of the owned estate and potential value from the leased estate and pipeline could position the company’s value above €2 billion. However, with shares trading at 7.7x 2025E EV/EBITDA, the current market conditions and valuation metrics support a Hold rating at this time.
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