Berenberg lowers target price on Dalata Hotels Group

Analysts at Berenberg lowered their target price on hotels operator Dalata Hotel Group from 510.0p to 480.0p on Wendesday but applauded the group's "resilient H1 performance".

Berenberg said Dalata had delivered a solid H124 performance, with top-and-bottom-line growth despite a weaker market backdrop and inflationary pressures.

Although Berenberg noted that July and August had been "slightly weaker" than the company expected and, as a result, brought down its estimates, it also said the medium-term outlook remained robust and said the company continued to be "a very cash-flow generative business", as evidenced by a new €30.0m buyback.

Looking ahead, the German bank said it remains confident in Dalata's ability to deliver on its outlook and medium-term growth strategy, leading it to reiterate its 'buy' rating on the stock.

Reporting by Iain Gilbert at Sharecast.com