Accor's Stock Falls Below Key Support Despite Two Analyst Upgrades
Accor's stock ended the week on a negative note, dropping 2.77% on Friday, March 6, to 43.17 euros. The hotel group's shares have now declined nearly 13% over the past seven days, amid a market environment marked by strong geopolitical uncertainties. This downward trend contrasts with two recent analyst recommendations.
Technical Breakdown
Closing at 43.17 euros, Accor has fallen below its support level of 43.32 euros, a notable technical signal that reflects the magnitude of selling pressure. The stock is now significantly below its 200-day moving average (45.21 euros), a long-term trend indicator, confirming a prolonged bearish territory. With an RSI at 32, the stock is approaching the oversold zone, generally considered under the threshold of 30, which reflects the intensity of the recent downward movement. Over three months, the performance shows a decline of 7.32%, while over a year, the loss reaches 9.42%. The stock, which was still trading above 49 euros at the beginning of the year, has lost more than six euros in a few weeks, illustrating a rapid deterioration of its market dynamics.
Contrasting Analyst Views
Despite this marked decline, two research firms have recently adjusted their views favorably. On March 4, Kepler Cheuvreux upgraded its recommendation from 'hold' to 'buy', without communicating a new price target. On the same day, Citi maintained its buy rating while raising its target from 52 to 58 euros, representing a potential upside of about 34% from the current price of 43.17 euros. These adjustments come as the hotel group, whose business is closely linked to international tourist flows, faces a complex external environment. The surge in oil prices, fueled by military escalation in the Middle East and the unprecedented blockade of the Strait of Hormuz, could impact air travel and thus global hotel attendance. However, analysts who raised their recommendations seem to favor a fundamental reading of the case, believing that the current valuation already incorporates a significant portion of these risks.