** Looking into 2026, Deutsche Bank says it remains selective on European leisure sector, noting hotels are the only sub-sector in positive territory this year, which was marred by geopolitical and tariff uncertainties
** "Even though the 2026 outlook does not look too strong, we still expect some of our covered companies to capture a decent level of growth with some operating leverage" - DB
** It says almost all companies under its coverage have "solid" balance sheets and prefers "quality" names and those with exposure to the strong leisure clientele, noting favourites "buy"-rated Compass CPG.L and Tui TUI1n.DE
** DB upgrades French hotelier Accor ACCP.PA to "buy" from "hold," citing upcoming catalysts like the Essendi disposal to fund shareholder returns; Accor shares are up 2.4% at 0941 GMT
** The broker cuts contract caterer Elior ELIOR.PA to "hold" from "buy" pointing to remaining uncertainties the stock's low liquidity; shares in Elior drop around 3%, underperforming the SBF120 index .SBF120, which rises 0.7%
COMPANY
NEW RATING
OLD RATING
NEW PT
OLD PT
Compass CPG.L
Buy
Buy
3,000p
3,000p
TUI TUI1n.DE
Buy
Buy
12 euros
11 euros
Accor ACCP.PA
Buy
Hold
53 euros
48 euros
Edenred EDEN.PA
Buy
Buy
34 euros
34 euros
Melia MEL.MC
Buy
Buy
9.5 euros
9.5 euros
Jet2 JET2.L
Buy
Buy
1,857p
1,857p
OTB OTB.L
Buy
Buy
345p
345p
Saga SAGA.L
Buy
Buy
285p
285p
IHG IHG.L
Hold
Hold
8,050p
8,050p
Whitbread WTB.L
Hold
Hold
2,815p
2,815p
Sodexo EXHO.PA
Hold
Hold
60 euros
60 euros
Pluxee PLX.PA
Hold
Hold
23 euros
23 euros
Scandic SHOTE.ST
Hold
Hold
SEK 90
SEK 78
Elior ELIOR.PA
Hold
Buy
3.2 euros
4 euros
(Reporting by Dimitri Rhodes)
((Dimitri.Rhodes@thomsonreuters.com))