Just three days before the end of October, the Stoxx Travel and Leisure, which is the segment that encompasses some of the most representative European companies in the travel and entertainment industry, we note an increase of almost 5%which places it as the most bullish on the Stoxx 600 of the month.
This monthly rebound would be the largest in the segment since January, when an increase of 6.04% was recorded. The annual balance remains at 9.4%, in a year where it closed negative for five of the ten months of the year. Thus, the sector is currently 2.2% from the annual quotation highs it reached in February, which in turn were the maximum levels of September 2021.
The valuation of the European sector as a whole has also increased in recent weeks, by 1.2% more than the consensus of experts collected by Bloomberg at the end of September. Indeed, the segment’s price target is at its highest level since May. Overall, the travel and entertainment segment has an upside potential of nearly 15% for the next 12 months.
In this monthly report, Sodexo and Tui occupy the first positions of the most optimistic companies in October, with increases of 10.6% and 14.5% three days from the end of October. Ryanair would be in third position, with an increase of 9.2% over the month.
Among the 13 companies that make up the European sector, only three are negative in October, Entain occupying the red lanterns, with a correction of almost 5%. Flutter Entertainment suffered a slight decline of 0.7% and EasyJet was practically stable, with -0.1% over the month. Over the year, IAG is the leader in this ranking, with a revaluation of its shares of 44.5% since January 1. Flutter and Intercontinental Hotels come next in the annual report, with increases of 30.5% and 25.8%. Entain, Evolution AB and Deutsche Lufthansa are on the other side of the picture, with annual losses of 23.8%, 16.4% and 14.7%.
The consensus of experts expects an EBITDA margin of almost 49% for the entire sector in 2024, or 16 points more than that recorded in 2023, of 33%, and a PER (once profit is included in the share price) by 13 times by 2024.
