With only three days left until the end of the month of October, the Stoxx Travel&Leisure, which is the segment that encompasses some of the most representative European firms in the travel and entertainment industry, it is noted an increase of almost 5%which places it as the most bullish within the Stoxx 600 of the month.
This monthly rebound would be the largest in the segment since January, where an increase of 6.04% was recorded. The annual balance remains at 9.4%, in a year in which it has closed negative in five of the ten months of the year. Thus, the sector is currently 2.2% away from the annual quotation highs it reached in the month of February, which were in turn the maximum levels of September 2021.
The valuation of the European sector as a whole has also grown in recent weeks, with 1.2% more than what the consensus of experts collected by Bloomberg gave at the end of September. In fact, the segment’s target price is at its highest level since May. As a whole, the travel and entertainment segment has an upside potential of almost 15% for the next 12 months.
In this monthly balance, Sodexo and Tui occupy the first positions as the most bullish companies in October, with increases of 10.6% and 14.5% three days before the end of October. Ryanair would be in third position, with an increase of 9.2% in the month.
Among the 13 companies that make up the European sector, only three are negative in October, with Entain occupying the red lanterns, with a correction of almost 5%. Flutter Entertainment suffers a slight drop of 0.7% and EasyJet is practically flat, with -0.1% for the month. For the year, IAG is the leader in this classification, with a revaluation of its shares of 44.5% since January 1. Flutter and Intercontinental Hotels are next in the annual balance, with increases of 30.5% and 25.8%. Entain, Evolution AB and Deutsche Lufthansa are on the other side of the table, with annual losses of 23.8%, 16.4% and 14.7%.
The consensus of experts expects an EBITDA margin of almost 49% for the sector as a whole in 2024, which is 16 points more than that registered in 2023, of 33%, and a PER (times that the profit is included in the price of share) of 13 times by 2024.
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