Berenberg sees 'buckets of opportunity' in 2024 for leisure

Evolution AB (publ)

24/01/2024 14:00

** Berenberg is still cautiously optimistic on leisure in
2024 and says that each of the sub-sectors has specific
tailwinds supporting earnings growth
    ** It groups its preferred stocks to own in 2024 into
"buckets of opportunity": quality, growth, value and special
situations 
    ** In the "quality bucket" it places Compass  CPG.L ,
Hollywood Bowl  BOWL.L , and Whitbread  WTB.L 
    ** Its "growth" bucket contains WH Smith  SMWH.L , Flutter
Entertainment  FLTRF.L , and Loungers  LGRS.L , while "value":
Dalata Hotel  DHG.I , FirstGroup  FGP.L , and Accor  ACCP.PA ,
    ** "Special situation" stocks are Sodexo  EXHO.PA , Mobico
 MCG.L , and Entain  ENT.L , Berenberg says
    ** Catering, where it sees a large portion of the market "up
for grabs" for the likes of Compass and Sodexo, remains its
preferred sub-sector, followed by hotels and then gaming
    ** For hotels, the broker expects more muted revenue per
available room (RevPAR) growth in 2024, but still sees growth
given the constrained supply outlook, while demand remains
robust
    ** In gaming, the U.S. will continue to be a driver of
growth, although there may be some headwinds ex-U.S., it warns
    ** The broker downgrades online gambling group Kindred
 KINDsdb.ST  to "hold" from "buy" as the competitive environment
is set to intensify
    ** Its last "bucket" consists of least preferred stocks:
InterContinental Hotels Group  IHG.L , Gym Group  GYM.L , and
Evolution  EVOG.ST ; all three "hold"-rated

 (Reporting by Marta Frąckowiak)
 ((marta.frackowiak@thomsonreuters.com))