BUZZ-Citigroup resumes leisure sector coverage seeing double-digit growth, names Whitbread and Sodexo top picks

Reuters
02-24
BUZZ-Citigroup resumes leisure sector coverage seeing double-digit growth, names Whitbread and <a href="https://laohu8.com/S/SDXAY">Sodexo</a> top picks

** Citigroup resumes coverage for leisure sector companies, as it sees multi-year, double-digit growth potential in sector's leaders and chooses Whitbread WTB.L and Sodexo EXHO.PA its overall and contract catering subsector, respectively, top picks

** It highlights that investors can find high-quality industry leaders that compound earnings, supported by favourable fragmented market structures enabling technology deployment at scale, which further boosts competitiveness

** It also notes attractive pricing dynamics in hotels, with dynamic pricing according to demand, and in caterers, with about 65% contracts inflation-linked and structural cost advantage

** The broker adds the sector's exposure to key themes of, for instance, experiential consumption, nutrition, and both cyclical and defensive demand drivers also adds to its appeal

** It resumes Whitbread ("buy") on anticipated positive RevPAR growth and Sodexo ("buy") citing H2-weighted contract wins

COMPANY

RATING

OLD RATING

Accor

Buy

N/A

$Aramark(ARMK-W)$

Buy

N/A

Basic Fit

Buy

N/A

Cintas

Sell

N/A

Compass Group

Neutral

N/A

Elior

Buy

N/A

Jeux

Neutral

N/A

Fluidra

Neutral

N/A

Intercontinental Hotels Group

Sell

N/A

Sodexo

Buy

N/A

SSP Group

Buy

N/A

Technogym

Neutral

N/A

TUI

Neutral

N/A

Whitbread

Buy

N/A

(Reporting by Marta Serafinko in Gdansk)

((Marta.Serafinko@thomsonreuters.com; +48 58 769 66 00;))

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