On Thursday, Bernstein reaffirmed its positive stance on shares of Accor SA (AC:FP) (OTC: OTC:ACCYY), maintaining an Outperform rating and a price target of €48.20. The firm highlighted the potential benefits stemming from Accor (EPA:ACCP)'s revamped operational structure, particularly in terms of operating leverage in the Premium, Midscale and Economy (PME) segment and development opportunities in the Luxury and Lifestyle (LL) division.
Bernstein's analyst pointed out that the recent guidance upgrade by Accor appears conservative, and their expectations for the company's EBITDA are at the higher end of the company's own projections. The firm anticipates that Accor will not only meet but also exceed its four-year plan, which is expected to include regular share buyback initiatives.
The current trading price of Accor's shares, at approximately 11.5 times the estimated 2024 EV/EBITDA, is noted to be at a 23% discount compared to its industry peers. Bernstein interprets this valuation gap as an opportunity for investors, suggesting that there is room for the stock price to rise.
In its analysis, Bernstein underscored the importance of the group's ability to execute its long-term strategy effectively. The firm's expectations are based on the premise that Accor will continue to implement its strategic plan successfully, which in turn should positively impact the stock's performance.
Investors and market watchers are keeping a close eye on Accor's progress as it navigates through its reorganization and strategic initiatives. The company's efforts to enhance its operations and financial performance are central to Bernstein's assessment and outlook for the hospitality giant's stock.
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