LONDON (ShareCast) - Credit Suisse has upgraded French hotel group Accor to outperform from neutral and raised its price target to 30.70 euros from 22.70 euros.

The Swiss broker changed its 2012 growth forecast of Accor's revenue per room from -3% to 0% for 2012. It also raised its earnings per share estimate by 21%, now 10% above the consensus estimate, and said that it may lift forecasts further due to the group's debt restructuring.

Credit Suisse explained that Accor's stock performance over the last six months was 10% below rivals and that it has the lowest valuation among the highest capitalised companies in the hotel sector.

Meanwhile, credit ratings agency Standard & Poor's has raised its credit outlook for the company to stable from negative and confirmed its long-term rating of 'BBB-' and short-term rating of 'A3'.

At around noon in Paris, shares of Accor were up 3.5% to €27.50.

MJ.J

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