Berenberg lowers target price on Dalata Hotels Group

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