In a report released today, Adela Dashian from Jefferies maintained a Hold rating on Scandic Hotels Group AB, with a price target of SEK80.00.
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Adela Dashian has given her Hold rating due to a combination of factors influencing Scandic Hotels Group AB’s performance. The company’s net sales for the third quarter were in line with expectations, showing a modest year-over-year growth and a solid organic increase. However, the adjusted EBITDA margin experienced a slight decline, primarily attributed to currency fluctuations and an accelerated pace of commercial development. Despite these challenges, the company’s RevPAR and occupancy rates demonstrated a positive trend, indicating a recovery in demand and effective commercial strategies.
Management’s outlook for the fourth quarter suggests stable occupancy levels compared to the previous year, with anticipated slight improvements in pricing. The ongoing commercial momentum and the strategic acquisition of Dalata, expected to close soon, provide potential growth avenues. Nonetheless, these factors combined with the current financial metrics led Adela Dashian to maintain a Hold rating, reflecting a balanced view of the company’s prospects and current market conditions.
In another report released on October 23, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a SEK91.00 price target.