Accor, Flutter and Compass are BofA's leisure picks in Europe on US-driven growth

Accor SA

24/01/2025 12:27

** BofA Global Research says strong American travel demand, North American
outsourcing opportunities and higher U.S. gaming penetration are driving growth
for European leisure players
    ** The analysts choose hotel operator Accor  ACCP.PA , food service firm
Compass  CPG.L  and online sports betting company Flutter  FLTRF.L  - double
listed in New York and London - as their top picks for the sector
    ** "American travellers should continue their love affair with European
travel (both for business and pleasure), boding well for hotels," BofA says
    ** Seeing no end to the travel cycle in 2025, it expects higher EPS growth
for asset-light hotels at around 17.5% on average, backed by net system growth,
margin expansion and share buybacks
    ** European food services and caterers should benefit from new first-time
outsourcing opportunities in North America, which are expected to fuel organic
growth to above pre-pandemic levels in 2025, BofA adds
    ** "Prime examples are University and Healthcare clients in North America,
where (more than) 60% of food service solutions are self-operated," it says

 (Reporting by Mateusz Rabiega)
 ((Mateusz.rabiega@thomsonreuters.com;))