Scandic Hotels (Buy, TP: SEK120.00) - Travel restrictions impact
With corporate travel policies becoming restrictive as the coronavirus spreads, Nordic hotel demand is being hit and we now model RevPAR down 25–30% over the high season in Q2–Q3 YOY, with a normalisation thereafter. This has a significant impact on our forecasts, but we still expect Scandic Hotels to generate healthy FCF in 2020e. We reiterate our BUY but have cut our target price to SEK120 (135).
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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