Dell falls as soft current quarter guide offsets Q2 beat, full-year outlook lift
On Wednesday, Berenberg lowered the price target for Dalata Hotel Group PLC (DAL:LN) to GBP4.80 from GBP5.10, while maintaining a Buy rating on the stock. The adjustment follows Dalata Hotel's announcement of its first-half 2024 results, which showed growth in both revenue and profits despite challenging market conditions and rising costs.
The company experienced a slight downturn in performance during the recent months of July and August, falling short of expectations. This led to a revision of Berenberg's estimates. Nonetheless, the firm expressed confidence in Dalata Hotel's medium-term prospects, highlighting the company's strong cash flow. This was demonstrated by a new EUR30 million share buyback program unveiled today.
Dalata Hotel's resilience in the face of a weaker market and inflationary pressures was noted, with the firm delivering solid results in the first half of the year. The new price target reflects a more cautious short-term outlook while still recognizing the company's potential for continued growth.
The analyst from Berenberg underscored the robust medium-term outlook for Dalata Hotel Group, despite the recent need to adjust estimates. The company's ability to generate cash flow was seen as a key strength, with the new share buyback program serving as a testament to this financial capacity.
Looking forward, Berenberg remains optimistic about Dalata Hotel's ability to achieve its forecasted results and growth strategy. The firm reiterated its Buy recommendation, signaling its belief in the company's value and future performance, despite the lowered price target.
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