** 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;))
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.