Compagnie des Alpes to gain from snow scarcity at rival resorts, Stifel says

Compagnie des Alpes SA

03/07/2023 08:08

** Stifel initiates Compagnie des Alpes  CDAF.PA  at "buy",
saying the French operator of ski resorts and theme parks stands
to benefit from lower snow levels at competing low-altitude
resorts
    ** The ski areas of the group's major resorts - Val
d'Isère/Tignes, Méribel/Les Ménuires, Les Arcs/La Plagne - are
all above 2,000m and boosted by a growing influx of skiers
looking for reliable snow, Stifel says
    ** "Over the past 20 years, 10% of French ski resorts have
closed due to a lack of snow in low-altitude locations," the
broker says, adding this will likely accelerate over the next
few years due to global warming
    ** Compagnie des Alpes, which owns two of France's largest
theme parks, is also outperforming the European theme park
sector thanks to an active investment strategy, Stifel says
    ** It notes the market, concerned about global warming and
economic slowdown, tends to underestimate the group's
performance and growth
    ** Stifel expects the group to suffer a small margin squeeze
due to higher energy costs this year, but should see margins
recover in 2024, as it continues to raise prices and benefit
from stabilising costs
    ** Shares are up 2.8% in early trading

 (Reporting by Diana Mandiá)
 ((diana.mandiaalvarez@thomsonreuters.com))