(AOF) – The Pierre & Vacances-Center Parcs Group saw its share price fall by 4.59% to 1.41 euros after publication of its 1st quarter turnover. Tourist activities showed an increase of almost 6% over one year, to 363.7 million euros, in the wake of the growth recorded during the summer season. TP Icap Midcap remains a buy on the stock despite this figure slightly below its expectations, with a price target of 2.20 euros. The broker particularly highlights the “good direction as of date of reservations” which “encourages optimism”.
The group specifies that the reservations received to date are in progress compared to the previous financial year, and already represent nearly 85% of the budgeted objective for the first half of the year and almost half of the budgeted objective for the whole of the 2023/2024 financial year.
Accommodation turnover amounted to 287.2 million euros in the first quarter, up 5.4% year-on-year after an increase of 4.8% recorded during the summer season. The group’s total turnover increased by only 0.9% to 394.1 million euros.
“Once again, all the brands will have contributed to the group’s growth”, notes TP Icap Midcap, stressing that Center Parcs remains “the main driver” of this progression (+6.4% to 249.4 million euros). Center Parcs was buoyed this quarter “solely by the effects of the move upmarket” (+6.3% price increase), volumes having been “down slightly”.
The group has finalized the sale of 29 Les Sénioriales residences to the Acapace group (Jardins d’Arcadie), which according to the broker “will have a favorable impact on profitability” from 2025, “these activities being structurally loss-making”.
TP Icap Midcap remains “convinced of the clear undervaluation of the stock”.
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