JPMorgan lifts Accor SA stock target to EUR58.50, keeps Overweight

Published 07/03/2025, 07:30
JPMorgan lifts Accor SA stock target to EUR58.50, keeps Overweight

On Friday, JPMorgan expressed a positive outlook on Accor SA (AC:FP) (OTC: OTC:ACCYY) by raising the price target from EUR54.00 to EUR58.50 while maintaining an Overweight rating on the stock. The adjustment follows a detailed analysis in JPMorgan’s 2025 Outlook, which underscores Accor (EPA:ACCP)’s strong position within the hospitality industry.

The research firm’s analyst highlighted Accor’s diversified business model and revenue per available room (RevPAR) momentum, which is outpacing its peers. Additionally, the potential for improved fee margins and the anticipated disposal of AccorInvest were cited as factors contributing to the company’s robust set-up. JPMorgan anticipates these strategic moves will lead to higher shareholder returns, estimating a 6% increase in market capitalization.

JPMorgan has also revised its revenue and EBITDA estimates for Accor, increasing them by an average of 3% for the fiscal year 2025 and beyond. This revision takes into account the expected sale of AccorInvest in 2026. The firm suggests that this disposal should enhance shareholder returns.

In terms of valuation, Accor’s shares are currently trading at around 11 times the 1-year forward enterprise value to EBITDA (EV/EBITDA) multiple. This valuation is consistent with the company’s historical average. However, JPMorgan posits that Accor’s solid trading momentum and improved execution could justify a higher valuation than the historical multiple.

The analyst’s remarks reflect confidence in Accor’s ability to continue meeting its mid-term targets, which could result in a material re-rating of the stock. JPMorgan’s updated price target and sustained Overweight rating suggest that the firm expects Accor’s positive trajectory to persist, positioning the company favorably within the competitive landscape of the hospitality sector.

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