Jefferies downgraded Accor SA to hold from buy and cut its 12-month price target to €52 from €55, citing underperformance in the core business and limited scope for a valuation re-rating. Analysts trimmed estimates by roughly 4%, leaving forecasts about 3% below consensus, and said the stock's 22.7 times next-twelve-months price-to-earnings multiple left little room for upside. The Middle East, which accounts for about 12% of Accor's room revenue and 15% of its hotel pipeline, saw industry revenue per available room plunge 63% in April before improving to a 7.9% decline in May, with the United Arab Emirates hit hardest at a 78.5% drop in April. Jefferies' base case assumes a gradual recovery in the second half of 2026, but the broker sees an unattractive risk-reward profile, with its downside scenario leaving earnings about 6% below consensus and its upside case offering only around 3% upside. The broker also flagged concerns about whether Accor's Management & Franchise division, which generates about 78% of group EBITDA, can meet its 2023-27 strategic targets, noting that reported EBITDA grew 6.3%, below the 9%-12% target range, while the Luxury & Lifestyle business delivered net unit growth of 7.5%, short of its 8%-10% target. Jefferies forecasts group EBITDA of €1.26 billion in 2026 and €1.37 billion in 2027, implying growth of about 5% and 9%, respectively, below the company's medium-term target range.
Accor S. A.Jefferies downgraded Accor to hold and cut price target, citing underperformance, limited valuation upside, and below-target EBITDA growth.