** Looking into 2026, Deutsche Bank says it remains selective on European leisure sector, noting hotels are the only sub-sector in positive territory this year, which was marred by geopolitical and tariff uncertainties
** "Even though the 2026 outlook does not look too strong, we still expect some of our covered companies to capture a decent level of growth with some operating leverage" - DB
** It says almost all companies under its coverage have "solid" balance sheets and prefers "quality" names and those with exposure to the strong leisure clientele, noting favourites "buy"-rated Compass CPG.L and Tui TUI1n.DE
** DB upgrades French hotelier Accor ACCP.PA to "buy" from "hold," citing upcoming catalysts like the Essendi disposal to fund shareholder returns; Accor shares are up 2.4% at 0941 GMT
** The broker cuts contract caterer Elior ELIOR.PA to "hold" from "buy" pointing to remaining uncertainties the stock's low liquidity; shares in Elior drop around 3%, underperforming the SBF120 index .SBF120, which rises 0.7%
COMPANY | NEW RATING | OLD RATING | NEW PT | OLD PT |
Compass CPG.L | Buy | Buy | 3,000p | 3,000p |
TUI TUI1n.DE | Buy | Buy | 12 euros | 11 euros |
Accor ACCP.PA | Buy | Hold | 53 euros | 48 euros |
Edenred EDEN.PA | Buy | Buy | 34 euros | 34 euros |
Melia MEL.MC | Buy | Buy | 9.5 euros | 9.5 euros |
Jet2 JET2.L | Buy | Buy | 1,857p | 1,857p |
OTB OTB.L | Buy | Buy | 345p | 345p |
Saga SAGA.L | Buy | Buy | 285p | 285p |
IHG IHG.L | Hold | Hold | 8,050p | 8,050p |
Whitbread WTB.L | Hold | Hold | 2,815p | 2,815p |
Sodexo EXHO.PA | Hold | Hold | 60 euros | 60 euros |
Pluxee PLX.PA | Hold | Hold | 23 euros | 23 euros |
Scandic SHOTE.ST | Hold | Hold | SEK 90 | SEK 78 |
Elior ELIOR.PA | Hold | Buy | 3.2 euros | 4 euros |
(Reporting by Dimitri Rhodes)
((Dimitri.Rhodes@thomsonreuters.com))
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