DB sees optimistic 2023 for travel and leisure, ups Scandic to 'buy'

Elior SA

18/01/2023 09:27

** Deutsche Bank expects a reasonably optimistic 2023 for
travel and leisure stocks after a volatile but resilient 2022
    ** It says the sector should benefit from better allocation
in spending compared to historical levels
    ** The broker forecasts top-line growth thanks to positive
volume base effects and inflation, especially in Q1
    ** Companies should post stable profitability in 2023, with
top-line growth offsetting negative cost inflation effects, it
adds
    ** "The market seems to consider the macro perspective as
more or less under control", the broker says, adding M&A should
remain an important theme in the sector
    ** It raises Scandic Hotels  SHOTE.ST  to "buy" from "hold",
saying the Nordic region's biggest chain is rapidly recovering
some financial leeway thanks to a strong and resilient domestic
market
    ** Scandic shares rise more than 5% after the upgrade
    ** DB maintains "buy" on hotel groups Accor  ACCP.PA ,
InterContinental  IHG.L  and Whitbread  WTB.L , and catering and
voucher firms Sodexo  EXHO.PA  and Edenred  EDEN.PA , saying the
last two should keep benefiting from solid top-line growth and
improving profitability
    ** It keeps "hold" on Autogrill  AGL.MI , Compass  CPG.L ,
Elior  ELIOR.PA , Melia  MEL.MC , NHH  NHH.MC , TUI  TUIGn.DE 
and SSP Group  SSPG.L , essentially for valuation or balance
sheet reasons
 (Reporting by Diana Mandiá)
 ((diana.mandiaalvarez@thomsonreuters.com))