BofA Boosts Accor Price Objective With "Top Buy" Label on Potential for Essendi Stake Sale, Buybacks

02:07 AM EST, 12/17/2025 (MT Newswires) -- BofA Global Research increased its price objective for Accor (AC.PA, ACR.F) and named the hospitality group as its "top Buy idea" in European Union hotels into 2026, amid potential catalysts such as the Essendi stake sale and higher buybacks. "A potential Essendi stake sale will likely be a key catalyst in 1H26 given market concerns (unjustified in our view) over whether it will complete. We estimate a 30.6% stake sale could generate (Euro)800m-1bn proceeds, at least 75% of which should be returned to shareholders as additional buybacks on top of the current ~(Euro)500m annual run rate. The remaining proceeds would also give the company flexibility to reduce debt if needed," analysts wrote on Tuesday. The research firm expects Accor's growth in revenue per available room to improve to 3.5% in 2026 from an estimated 3.3% in 2025 as the impact of tough Olympics comparables diminishes and continued "healthy" demand in overall lodging. From 2025 to 2027, BofA projects a 10% compound annual growth in EBITDA. Noting "considerable" re-rating potential, the price objective was raised to 66 euros from 53.5 euros with a buy rating.