Hotels and gaming top picks in leisure industry for 2022 - Jefferies

Scandic Hotels AB

25/11/2021 07:45

** Jefferies says hotels and gaming sub-sectors are the top
picks for 2022 in the leisure industry compared to pubs,
restaurants, cinemas, tour operators and transport segments
    ** Brokerage expects investors to focus on the leisure
sub-sectors in 2022 on the back of pent-up demand and
vaccine-led normalisation 
    ** Hotel operators with U.S., domestic and/or leisure
exposure to continue to outperform in 2022 and there is
potential for market consolidation next year - Jefferies
    ** Brokerage says InterContinental Hotels Group  IHG.L ,
Whitbread  WTB.L  and Melia Hotels International  MEL.MC  are
the top picks for hotels
    ** In gaming, Jefferies says liquidity is robust; adds U.S.
sports betting and iGaming remains a multi-year, high-growth
prospect, but UK regulation remains a near-term risk
    ** Brokerage says 888 Holdings  888.L , Entain  ENT.L  and
Flutter Entertainment  FLTRF.L  are the top picks in gaming
    ** Low-ticket, highly accessible leisure activities such as
pubs, restaurants and cinema to rebound rapidly as COVID
backdrop normalises, boosted by market share gains - Jefferies
    ** Brokerage expects structural changes in tour operators
sector in 2022 and says there is pent-up demand for packaged
holidays
    ** For transport, Jefferies says it is cautious on the
timing of UK regional bus recovery, especially margins; expects
growth in international markets to be attractive
    
    
 Company name          New rating    Old        New PT    Old PT
                                     Rating               
 Accor SA              Hold          Buy        EUR 33    EUR
                                                          38.2
 Dalata Hotel Group    NA            Buy        EUR 4.7   EUR
                                                          5.3
 InterContinental      Buy           Underperf  5750p     3750p
 Hotels Group                        orm                  
 J D Wetherspoon       NA            Buy        1300p     1675p
 Melia Hotels          Buy           Hold       EUR 7.5   EUR
 International                                            7.4
 On The Beach          NA            Underperf  220p      300p
                                     orm                  
 PPHE Hotel Group      NA            Buy        1750p     1850p
 Scandic Hotels Group  Hold          Underperf  SEK 35    SEK
 AB                                  orm                  27.8
 SSP Group             NA            Hold       300p      350p
 Whitbread             NA            Buy        3600p     4000p
 

 (Reporting by Siddarth S in Bengaluru)
 ((Siddarth.s@thomsonreuters.com;))