Shares in Accor (Paris: FR0000120404 - news) rise 3 percent after UBS (Berlin: UBRA.BE - news) analysts raise their recommendation on the hotel group to "buy" from "neutral", citing potential for its margins to increase.
"Accor is now in the seventh year of its transformation, a process that aims to make it asset-lighter and drive up margins," UBS analyst Jarrod Castle writes. "With the group 2012 margin at 9.3 percent and a 2016 target of over 15 percent, the transformation has further to run."
The UBS analysts raise their price target on the stock to 31.5 euros from 26.5 euros. The stock is trading up 2.8 percent at 29.01 euros by 0821 GMT.
Reuters messaging rm://james.regan.thomsonreuters.com@reuters.net
