Exane ups Melia to 'outperform' on multiple positive catalysts in sight

Melia Hotels International SA

10/12/2024 10:15

** BNP Paribas Exane upgrades Melia Hotels  MEL.MC  to
"outperform" from "neutral", saying the Spanish group presents
an attractive investment opportunity with many possible drivers
    ** "With potential ownership changes on the horizon, we see
multiple catalysts for upside" - Exane
    ** It points to a favourable European outlook, margin
stabilization, healthier balance sheet and discount valuation
among those catalysts
    ** Exane says Melia's RevPAR still has room to grow by 4%
between 2024-2026, while EBITDA margins are no longer under
pressure from abnormal inflation levels 
    ** It also expects lower financing costs to boost cash flow
generation in FY25/26
    ** Shares of Melia are up 4.1% by 1001 GMT
    ** Out of 14 analysts that cover Melia, nine rate it "strong
buy" or "buy", ​four "hold" and one "strong sell"​​ - LSEG

 (Reporting by Tiago Brandao)
 ((Tiago.Brandao@thomsonreuters.com;))