Leisure, Tourism & Travel

Leisure, Tourism & Travel equity research

Explore the most viewed and latest equity research and media content for companies within the Leisure, Tourism & Travel sector. Companies that operate in this sector provide goods and services related to: airlines, gambling, hotels, tourism, leisure & entertainment.

Leisure, Tourism & Travel

Explore the latest equity research and media content for companies within the Leisure, Tourism & Travel sector. Companies that operate in this sector provide goods and services related to airlines, gambling, hotels, tourism, leisure & entertainment.

31 Jan 19

Quarterly Research Outlook

The market has not faced quite so many conflicting challenges for a number of years, whether related to global geopolitics, trade wars, ongoing Eurozone issues or the “will they, won’t they” saga of Brexit. In our Best Ideas, we sought to highlight stocks that present investors with interesting opportunities following recent market moves. Those stocks, we believe, warrant investor attention, in many cases for uncorrelated or stockspecific reasons, regardless of the near-to-medium term market direction. These stocks, in general, represent attractive and well-managed businesses or assets, with share price catalysts and where valuations or recent stock performance provide investors with a good entry point.

Companies: 7DIG ABBY AMS ANX ARS ATYM AVON BLVN PIER CGS CAML CALL CSRT TIDE DTG DEMG ELM EMR FPO FST GTLY GENL GRI GEEC HDY HMI HAYD HEAD HILS HTG HUR IBPO IOG INDI JHD JOG KEYS KCT KGH LAM MACF MOD MKLW OXIG PCA PARK PMO RBW RMM REDD RSW RNO RKH RBGP ROR SUS SCPA SHG SOLG TWD TRAK TRI VNET VTC ZTF

05 Feb 19

THE MONTHLY February 2019

This Investment Research Paper addresses the issue of renewable power generation in the UK and in mainland Europe, which – after the deep-seated financial crisis of 2008/09 and the ensuing recession – now has better prospects of achieving critical mass. It also considers investment perspectives.

Companies: OPM AVO AJB AGY ARBB AVCT DISH BUR CLIG CSH DNL DPP GTLY GDR HAYD KOOV MCL MUR NSF OXB PCA RE/ REDX STX SCE SIXH TRX TON VAL VTA W7L

26 Feb 19

Share & share alike

We have seen a continuation of the rally evident so far this year. The factors are familiar with greater optimism regarding US-China trade talks. At home, the path to Brexit remains unclear as D-day looms. The possibility of a delay has increased. The company reporting season continues to highlight winners and losers with the majority of results in line. We have also seen an uptick in corporate M&A. Results set the morning agenda and Brexit votes the evening one. In Share News & Views we comment on AorTech International*, APC Technology*, DeepMatter*, Golden Ocean Group and P&O Ferries/DP World.

Companies: AOR APC BONH BMS CTG CRPR DMTR ESC EUSP FDM FA/ LSAI NKTN PCF SNX TCN VRE W7L

05 Mar 19

Robust FY18, strong start to FY19

GVC reported robust FY18 results. Pro forma EBITDA came in at £755m, in line with the upper end of the £750-755m range guided in January. More importantly, current trading was strong, with NGR growth of 11% (01/01-24/02) vs +9% in FY18. Current trading was, again, online-led with online NGR growth of 22% vs +9% for EU Retail and -2% in UK Retail. FY19 EBITDA is said to be in line with market expectations. The group guided for 10% DPS growth.

Companies: GVC

15 Mar 19

Weaker H1 margins but the top-line momentum continues

H1 margins were softer vs our estimates. FCF surged c.95% due to the favourable timing of supplier payments but should normalise in H2. Although management has announced c.10% lfl growth in the six weeks ended 10 March due to favourable weather conditions in February 2019, this momentum should normalise towards a mid single-digit in our opinion. We continue to believe in the company’s business model but the valuation is still not attractive. No change in the stock recommendation.

Companies: J D Wetherspoon

09 Aug 18

Cenkos: Rotala Plc - In-line interim results for FY18E

Rotala plc released interim results for FY18E, in-line with our full-year expectations when adjusted for recent contract wins, the seasonality of the late 2017 Hotel Hoppa acquisition and the full-half contribution of the recently acquired CEN Group. A new banking relationship provides Rotala with additional access to capital, allowing management to continue pursuing an acquisitive strategy in a consolidating market. We leave our estimates unchanged and believe Rotala offers value for investors, trading on a FY19E yield of 5.5%. Buy

Companies: Rotala

15 Jan 19

On track, current NAV of 153p

Elegant has announced FY 2018 results that show good progress vs. last year and are within 3% of our forecasts at the adjusted EBITDA level, and ahead at the adjusted EPS level albeit due to lower tax. The Group is trading in line with expectations in FY 2019 with over 60% revenue visibility for 2019E. We increase our adj. EPS forecast by 12% and 13% in FY19 E and FY20E which is largely driven by changes to corporate tax rates in Barbados. We continue to believe the shares offer strong value.

Companies: Elegant Hotels Group

15 Mar 19

Better profit visibility in North America

Despite the tough cost environment in North America (75% of the group’s total operating profit), Autogrill still finished FY18 in line with guidance and the market’s expectations. The mid-term outlook has been maintained, which is a very positive sign, given the market previously anticipated a guidance downgrade due to the challenging macro environment in North America and soft traffic on motorways in Italy.

Companies: Autogrill

30 Nov 16

N+1 Singer - Marston's - Delivering growth and standing out from the pack

Marston’s is our solitary positive stock pick in the sub-sector. Recent finals reflected a year of further strategic, LFL and earnings progress. We believe it is operationally in a strong shape to make further solid progress in FY17, not least as it does not have the acquisition integration or turnaround issues confronting GNK, MAB and RTN. Moreover, it is relatively better positioned to manage the cost headwinds. We forecast 11% TSR returns in FY17 and feel the shares with a 5.5% historical yield and 12% FCF yield (FY17e) are oversold. We are buyers with a revised 12m TP of 150p.

Companies: Marston's

07 Oct 16

N+1 Singer - Greene King - Low growth = utility type assessment

We are downgrading the stock from Buy to Hold, setting 800p as our new 12m TP and lowering our FY17/FY18 EPS expectations by 7%/10%. This takes us 3%/8% below consensus. Trading has been mixed for c.3 years and the anaemic 3 year EPS CAGR of 3% is uninspiring. Until management can evidence a higher growth rate we feel the group should be viewed as a utility type stock with yield being the main attraction. We prefer Marston’s in the sector and are buyers of it ahead of next weeks YE update.

Companies: Greene King

12 Oct 16

N+1 Singer - Marston's - Solid YE trading update

We expect Marston’s YE trading update to be well received by the market today. It has capped off the FY16 financial year with an in line update, solid LFL sales growth and delivered on the new opening target. This completes a year in which it has successfully navigated a mixed consumer backdrop, wider supply growth challenges and comfortably outperformed the sector on LFL sales growth (2.3% vs the sector at c.1%). We do not envisage making any meaningful changes to our forecasts post today’s update, implying y-o-y EPS growth of 7%. Importantly, this means Marston’s is one of the very few pubs & restaurant stocks that we have not had to downgrade estimates for in the last 12m. Mixed wider sector newsflow and Brexit concerns have understandably weighed on the share price in recent month (-13% YTD) but the positive tenor of today’s YE update highlights the attractions of its proposition. We continue to view Marston’s as a double-digit TSR compounder with a solid 3 year EPS CAGR of 8% (vs sector at 6% and peer GNK at 3%) and a progressive DPS policy. The shares trading on a cal’17 P/E of 9.1x; 9.2x EV/EBITDA; 9.4% FCF yield; and 5% DPS shield are oversold. In a yield hungry world Marston’s is a stand-out candidate in the Leisure sector. We reinforce our Buy with a 182p target price.

Companies: Marston's

18 May 17

N+1 Singer - Cineworld Group - Cracking trading update and upgrades, but largely priced in

A very strong trading update from Cineworld this morning covering the first 19 weeks of the year. We were estimating 18% sales growth but the company has announced 21%, of which c.10% was LFL. As we highlighted at the start of the year, the impressive metrics announced this morning reflect the strength of the film slate in H1. We should, however, flag that comps get much stiffer over July-Oct and thus industry momentum is likely to slow over summer and early autumn before Star Wars VIII Dec release. The cracking start to the year prompts us to push through a 4% FY17 EPS upgrade and to go 3% above consensus. We note, however, that management is steering to no change to full year expectations, which may disappoint some in the market. We also lift our FY18 EPS by 6% and raise our 12m TP to 760p (from 700p). Cineworld as a 2017 Key Stock Pick has served us very well with the shares +29% YTD. However, much of the positive ST news / upgrade risk we feel is now priced given a YR1 P/E of 19x and 11x EV/EBITDA. We are therefore lowering our stance to Hold. For reference the company has an investor / analyst site visit to Israel next week.

Companies: Cineworld Group

10 Oct 17

N+1 Singer - Marston's - YE update not as bad as feared & sensible moves to protect cash and profitability in FY18

Coming into today’s YE update poor sector newsflow over the last 2 months had weighed negatively on the Marston’s share price. In this context a satisfactory update and pro-active steps in the form of cost savings next year should be welcomed by the market today. Whilst trading in the last 10 weeks has been more challenging, due partly to the wet weather, it’s not been a disaster for Marston’s. We do not expect consensus forecasts to change much today, but we are lowering our FY17 EPS by 3% and FY18 by 5%, to bring us broadly inline with consensus. We are now forecasting 9% PBT and 3% EPS growth in FY18. The shares trade on a lowly FY18 P/E of 7.3x and 8.1x EV/EBITDA with a compelling c.7% yield. We expect some relief around today’s update and the shares to react positively. We stay positive on the stock on mid-term growth and yield considerations but lower our 12m TP from 140p to 120p.

Companies: Marston's

30 Nov 17

N+1 Singer - Marston's - Reassuring tenor to finals; no further downgrades

Having updated the market last month, finals are bang in line at the PBT level, implying y-o-y growth of 3%. EPS of 14.2p has come in a smidgen above our 13.8p. For those investors attracted by the stocks yield / progressive DPS policy there is good news re the DPS, with the final up 1% implying 3% y-o-y growth to 7.5p (vs our 7.6p) – 1.9x cover. We also note NAV of 147p at the year-end. Commentary on current trading is reassuring with LFL growth seen in the last 10 weeks, this is reassuring given a weak Q4-17 showing. We make no change to forecasts at this juncture. Overall a reassuring update in our view and a good start to the year. The shares trade on a FY18 P/E of 7.4x with an attractive 7% yield. We stay at Buy with a 120p 12m TP.

Companies: Marston's

03 Jul 17

The Monthly July 2017

As we approach 3rd January 2018 and the coming into force of the MiFID II legislation which changes the landscape for research, we are beginning to see some of the practical implications and complications. Brokers are in the early stages of working out how to structure charging for research, asset managers have already begun cutting their brokers’ lists and a model code of conduct for Research Payment Accounts for institutions has been published.

Companies: ABZA AGY APH ARBB AVCT BUR CMH CLIG COS DNL EVG MCL MUR NSF ODX PPH YGEN PHP PURP RE/ SCLP SPH VAL OXB

09 Oct 18

Arena Events Group plc Investor Overview

13 Dec 18

DP Poland - Corporate update

28 Nov 18

Ten Lifestyle Group Trading Update

03 Apr 18

DP Eurasia N.V CEO - Aslan Saranga

Premium

01 Jul 18

Ten Lifestyle Group (TENG) Investor presentation at Mello South June 2018

21 Feb 18

Veltyco Group (VLTY) ShareSoc presentation February 2018

07 Dec 17

Capital Network's Ed Stacey on Stride Gaming PLC

29 Jan 18

DP Poland - Trading Update

03 Dec 15

PCG Entertainment - An overview

29 Nov 17

Ten Lifestyle Group - Investor Overview

09 Mar 17

Capital Network's Ed Birkin on Goals Soccer

17 Nov 17

Celebrating Domino's Pizza's 50th store in Poland

19 Jul 18

DP Poland - H1 2018 Trading Update

01 Nov 17

Greenland Gas & Oil - Update from 121 Oil and Gas, London

04 May 18

DP Poland - Trading Update

Latest Content

Accor

When the largest Chinese shareholder wants a seat on the board

The chief executive of Accor said ”it would be complicated for Accor if its largest Chinese shareholder Jin Jiang requests a board seat at Accor”.

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19 Mar 19
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Paragon Entertainment

Morning Note – 15 March 2019

Paragon Entertainment (PEL): Corp Subscription

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15 Mar 19
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J D Wetherspoon

Weaker H1 margins but the top-line momentum continues

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15 Mar 19
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Autogrill

Better profit visibility in North America

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15 Mar 19
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ASO EOG PPH SNG

Morning Note – 14 March 2019

Avesoro Resources (ASO): Corp FY 2018 results | Europa Oil & Gas (EOG): Corp Holmwood revisited | PPHE Hotel Group (PPH): Corp Expanding presence in a major gateway city | Synairgen (SNG): Corp Phase II milestone – positive interim safety review

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14 Mar 19
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Deutsche Lufthansa

2018 numbers better than expected

Lufthansa’s revenue was up by 0.7% to €35.8bn whereas adjusted EBIT fell by 14% to €2.84bn and net earnings by 9% to €2.16bn. We had anticipated the following respective numbers: €35.8bn, €2.63bn, and €2.07bn. As projected, the dividend is unchanged at €0.80.

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14 Mar 19
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SHH MCM SRE ASO IHC PPH IPEL GINV OCI NSCI

Small Cap Feast

Techniplas –global producer and support services company providing highly engineered and technically complex components, making the supply chain to original equipment manufacturers more efficient. FYDec17 rev $515m. Diaceutics, a data analytics and implementation services company which services the global pharmaceutical industry, is looking to join AIM late March, offer TBC.