'Less profitable & more expensive'- DB cuts Scandic Hotels to 'hold'

Scandic Hotels AB

17/02/2023 11:13

** Deutsche Bank downgrades Scandic Hotels  SHOTE.ST  to
"hold" from "buy," expecting adjusted EBITDA of the Nordic
region's biggest hotel chain to take an inflation hit in 2023 
    ** The brokerage sees Scandic to deliver continued top line
growth, but says cost inflation and "very low level" of
government sponsorship will affect the hotel operator
profitability in 2023
    ** "Where we were initially expecting the EBITDA to continue
to grow, it should be down c. 18/20% vs FY22", DB says, even if
the group forecasts revenues to be "a logical continuation of
recovery" to 2022 
    ** The brokerage adds that it sees fewer positive short term
catalysts, and says share price "could suffer from a less
attractive profile"
    ** Out of five analysts that cover Scandic, one rates the
stock "strong buy", three rate it "hold", and one "sell"
    ** Shares in Scandic are down around 5% in mid-day trade,
extending Thursday's losses of 9% triggered by the hotel chain's
Q4 print
 (Reporting by Greta Rosen Fondahn)
 ((Greta.RosenFondahn@thomsonreuters.com))