(News Bulletin 247) – Stifel on Friday raised its recommendation on Accor from ‘sell’ to ‘hold’, with a price target raised from 20 to 32 euros, welcoming the ‘solid’ results unveiled yesterday by the hotel group.

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In a note released in the morning, the analyst believes that the risk / return profile of the value seems to him “more attractive” following the publication and a conference call deemed “convincing”.

‘Although the operating leverage could have been more convincing last year, it should improve over time’, writes the intermediary in his study.

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‘Together with the improved momentum in RevPAR, this brings our estimates above those of the consensus’, he adds.

Stifel says it is considering other potential catalysts, such as payouts to shareholders, but believes that these elements are currently outweighed by more unfavorable factors, in this case concerns surrounding strategy and a stock market valuation deemed ‘stretched’.

His new target price still suggests, according to him, a ‘small’ potential for appreciation, he concludes.

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