Jefferies has upgraded its recommendation on Accor from 'underperform' to 'buy', with a price target raised from 30 to 47 euros, and is now showing a preference for the stock over its British peer Intercontinental Hotels, downgraded to 'hold'.

With the capital allocation policy now 'simplified', the broker says he now sees for the French hotel chain 'a clear growth and profitability trajectory, and clarity on shareholder returns'.

Jefferies sees further upside for the stock as the valuation gap with Intercontinental Hotels narrows, with an EV/EBITDA discount of 30% versus 14% historically, despite a stronger RevPAR environment.

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