Investing.com -- Morgan Stanley has revised its financial expectations for several key players in the European hotel sector, adjusting price targets to reflect an anticipated slowdown in growth.
Analysts at Morgan Stanley, in their detailed analysis, have pointed to a projected deceleration in revenue per available room (RevPAR) as the primary catalyst for these adjustments.
This move by the financial services firm indicates a recognition of evolving market conditions and a recalibration of investment outlooks within the industry.
Specifically, Morgan Stanley has lowered its price target for InterContinental Hotels Group. The revised target now stands at 8,600 pence, a decrease from the previous 9,600 pence.
This adjustment signifies a shift in the brokerage’s valuation of IHG, reflecting a more conservative view of its future performance amid a less robust growth environment.
Similarly, Accor SA (OTC: ACCYY ), a prominent name in the European hospitality landscape, has also seen its price target reduced.
The new target is set at €52, down from the earlier €55. This revision aligns with the broader trend observed by Morgan Stanley analysts, as they factor in the anticipated moderation in RevPAR growth across the sector.
Whitbread (LON: WTB ) has also been subject to a downward revision in its price target. Morgan Stanley analysts have adjusted the target to 3,400 pence, a decrease from the previous 3,800 pence.
This adjustment suggests that the financial services firm is anticipating a tempering of Whitbread’s growth trajectory, consistent with the overall sector trend.
Scandic Hotels Group AB has experienced a marginal decrease in its price target.
The revised target is now SKr 81, slightly lower than the previous SKr 83. Even this relatively small adjustment underscores the pervasive sentiment of a growth slowdown influencing analyst expectations.
These adjustments made by Morgan Stanley analysts collectively paint a picture of a sector facing headwinds.
The downward revisions of price targets across multiple hotel stocks indicate a consensus view of tempered growth prospects in the European hotel industry.