The actions of Meliá Hotels They revalue in the year around 20% and practically recover the levels prior to the outbreak of the coronavirus pandemic. It is the sixth most bullish value of the whole IBEX 35.
The hotel chain regains momentum and clears important questions, including the possible expulsion of the IBEX 35, which experts believe it can avoid.
In addition, the analysis houses begin to get on the bandwagon of Meliá Hotels when discounting the strong recovery in tourism and its beneficial impact on the group.
For example, analysts from the Deutsche Bank they rated their results as “moderately optimistic” and reiterated their ‘buy’ recommendation.
In Bankinter They also just bet on the purchase and believe that the group will make a profit in the second half of this year.
The analysts’ vision
- Improve the environment. Vaccines have changed the landscape. “A revival of the market is expected, especially in the third quarter and in resorts, much of which depends on vaccination programs,” they say at Deustche Bank.
- The return to profit. Last year, the chain lost 420 million euros but “if the vaccination deadlines are met, the chain will return to profits in the second half of 2021”, they point out in Bankinter. Before, there are two quarters of “low hotel occupancies and heavy losses” ahead, they point out.
- Liquidity. The group has a cash of 316 million euros, “enough to cover six months at least in the current circumstances,” they point out in Bankinter. In his opinion, “the visibility of the company would not be compromised with the current vaccine forecasts.”
Potential asset sale
The fact that the price has practically recovered its pre-pandemic levels shows that the market values the effort to overcome a completely exceptional circumstance.
In addition, the group has more avenues to obtain additional liquidity should it be necessary.
- “The company could sell assets with strong capital gains” they emphasize in Bankinter. If this scenario occurs, in the Deutsche Bank They believe this would boost both the company’s bottom line and cash flows.
- “Enter the recovery that is to come and the possible sales of assets that it can make, the group should ensure liquidity for future months,” argue the experts of the German bank. However, in his opinion, a capital increase cannot be ruled out either.
The trajectory of the securities on the stock market confirms these better expectations. In February, the shares of Meliá Hotels They rebounded 31%, driven by the prospects of reopening the borders and the speech of Boris Johnson.
In the year, the 20% that is revalued Meliá Hotels contrasts with the 3% that barely adds the Eurostoxx600 and the 3.6% that the IBEX 35. This performance is the best among the hotel companies covered by Deutsche Bank.
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