Tuesday, May 30, 2023

Melia confirms the rebound and is within the range of 6 euros

Shares of Melia Hotels rose 0.59% to 5.975 euros in early morning, falling 0.27% on the IBEX 35 at the same time. The hotel chain is out of suspicion of selective and is already making a comeback of 11.5% from its low in mid-May, when it fell to 5,355 euros.

IG analyst Diego Morin explains, “Melia Hotel is at the gates of last April high, rebounding strongly from support at 5.40 euros and resistance at 6 euros is within reach.” “The improved prospects for the sector for the summer season create some optimism, at least for the short term,” the expert says.

Melia confirms the rebound and is within the range of 6 euros

The stock suffered during the first half of May, largely due to the poor reception of its first quarter results, which showed a consolidated attributable loss of 500,000 euros, however, an increase of 99.25% compared to the ‘red number’ of 59.3 million. Improved. Which was recorded in the same period last year.

Operating profit (Ebit) returned to the ‘black number’ in the quarter, reaching EUR 14.4 million, while revenue rose 45.9% to EUR 396.1 million, while operating expenses rose 26.4% to EUR 312.1 million. At the end of March, Melia’s net debt was 2,736.5 million euros, 63.5 million more than at the end of 2022, due to the seasonality of the business.

Once this bad experience is over, Melia Hotels has started to gain strength and confirms itself as one of the great heroes of the ibex 35 so far this year. In the accumulated year, it registered an increase of more than 30%, which allowed the market capitalization to rise above 1,300 million euros.

Analysts are also confident that this boom will increase further. According to data compiled by Reuters, an average of analysis houses covering the stock recommend it to hold and have a target price of 6.37 euros, which is a 6.5% upside from the current price.

Nation World News Desk
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