LONDON (ShareCast) - (Sharecast News) - Analysts at Berenberg raised their target price on hotel operator Dalata Hotel Group from 400.0p to 440.0p on Monday, stating it was sticking by "a long-term compounder".
Berenebrg stated that following the reopening of hotels in Ireland on 2 June, it had updated its forecasts on the group's recovery.

"While we now assume a slightly more cautious outlook, we continue to believe that international travel will ultimately recover, and believe that, with its excellent balance sheet, Dalata remains well placed to grow its pipeline in the meantime," said the analysts.

"The most significant changes to our forecasts are for the current year, due to the later-than-expected reopening of hotels in the UK and Ireland, as well as the continuation of travel restrictions. However, we still expect a full recovery to ultimately be achieved, and forecast that revenue per available room (RevPAR) will be above 2019 levels in regional Ireland in 2023, and in Dublin and the UK in 2024."

With Dalata shares trading "slightly below" net book value, the German bank also opted to reiterate its 'buy' rating on the stock.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE