Morgan Stanley resumes Accor at 'equal weight', shares cheap but outlook balanced

Accor SA

27/07/2026 08:06

** Morgan Stanley resumes coverage of French hospitality firm Accor ACCP.PA at "equal weight", saying several operational headwinds offset the stock's attractive valuation
** Broker adopts a "Do Not Disturb" stance, saying "we think the shares are cheap but see the investment case as well-balanced here"
** MS says the recently confirmed Essendi disposal broadly completes Accor's transition to an asset-light model and reinforces its cash return story
** Broker highlights Accor's plan to return 1 billion euros ($1.14 billion) to shareholders over the next 12 months and potential value creation from its lifestyle business Ennismore
** However, MS expects Accor's valuation discount to peers to persist, citing Middle East headwinds, subpar net unit growth and lingering questions over its fee growth algorithm
** Broker sets PT to 51 euros/shr, implying roughly 10% upside to Friday's close price of 46.31 euros
** Out of 16 analysts that cover the stock, 14 rates it "strong buy" or "buy," and ​two rates "hold - LSEG data
     
     
($1 = 0.8763 euros)

(Reporting by Jerome Terroy)
((jerome.terroy@thomsonreuters.com))