TAKING AIM: Elegant Hotels Current Stock Price Exciting Entry Point
LONDON (Alliance News) - Liberum said Thursday that Elegant Hotel Group PLC's current stock price offers an exciting entry point, as the hotel group is well placed to grow.
Liberum has retained Buy recommendation and 100 pence target price on the stock. Shares in the company were up 10% at 86.50 pence Thursday afternoon.
Earlier in the day, Elegant Hotels said trading since interim results in June has remained in line with market expectations.
The owner and operator of seven hotels and a beachfront restaurant in Barbados, said bookings are currently ahead of the same period last year after 12 days of its new financial year. It also confirmed that its Treasure Beach hotel in Barbados is "on track to reopen for business at the start of the peak tourist season.
Liberum has made no changes to its forecast and said its confidence is high in its middle of the range forecast for financial year 2017.
The broker said this was a "very positive" statement as the hotel group heads into its peak December to February trading period.
In August 2016, Elegant Hotels acquired the Waves hotel in Barbados for USD22 million. Liberum believes the strong momentum at he Waves hotel has continued following a refurbishment program between April and September 2016.
Liberum also said Elegant Hotels strategy continues to be the pursuit of further hotel acquisitions, as well as signing less capital intensive management contracts, like Hodges Bay and Landings, where it has agreements to provide a variety of services including management and marketing.
The broker believes that the continued strong trading at Waves hotel, the upcoming opening of Treasure Beach hotel and the management contracts offer potential upside to the stock.
Elegant Hotels will announce its results for the year ended September 30 on January 2, 2018.
By Gem Sofianos; [email protected]
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