Bankinter |Meliá’s revenues recover pre-Covid levels and the strong capacity for price hikes at its hotels will allow for the increase in costs to be offset to a large extent.
We foresee this trend extending at least over the coming months. For that reason, we are raising our recommendation to Buy. This is after tacitly lowering it to Neutral barely a month ago, given the doubts with respect to the evolution of the margins.
We are not revising our estimates, just incorporating the one-off payment of 40 million euros in direct aid in 2022e. This explains a slight increase in our target price of 0,7% to 7,81 euros/share. Cash flow generation will also be positive, which will allow for an improvement in the company’s liquidity and financial position. And it could sell assets to cut debt. Revaluation potential of +26%
