ACRFF - Accor is tipped by Deutsche Bank for short-term rally

2023-03-29 07:04:05 ET

Deutsche Bank fired off a Catalyst Call Buy Idea on Accor SA ( OTCPK:ACRFF ) on Wednesday. The firm said Accor is a short-term investment idea for investors to consider.

Analyst Andre Juillard thinks Accor should benefit from its exposure to the Asia-Pacific region, more specifically from the reopening in China. The Asian exposure is seen translating to higher growth ahead than the company's own guidance range of +5% to +9%. Juillard sees the potential for consensus earnings upgrades and for the multiple to re-rate for the growth potential.

"We also believe the consensus FY'23e EBITDA range (wide between €766m and €968m) ignores the potential savings plan (set at €200m, we have baked in a conservative €100m in our FY'23 estimates)."

Accor ( OTCPK:ACRFF ) is noted to trade at 9.3X the EV/EBITDA estimate or 18.1X P/E vs. a historical average of 10X and 20X respectively.

Read the recent Accor earnings call transcript.

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