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Stock impact report

Barclays sees opportunity in Compass amid travel sector stocks pullback [Yahoo! Finance]

COMPASS GROUP SP/ADR (CMPGY) 
NASDAQ:AMEX Investor Relations: compass-group.com/en/investors.html
Company Research Source: Yahoo! Finance
InterContinental Hotels Group and Accor (EPA:ACCP) were hit hard after negative commentary from U.S. carriers such as Delta Air Lines (NYSE:DAL) and American Airlines (NASDAQ:AAL), which pointed to weakening domestic business and leisure travel demand. While IHG's significant exposure to the U.S. market (around 60% of sales) makes it vulnerable, Accor, despite only 10% of its sales coming from the United States, is also affected due to broader macroeconomic fears and its high operating leverage. Investors are increasingly risk-averse amid mounting U.S. recession concerns, with fears that the slowdown signaled by airlines could soon reflect in hotel revenue per available room (RevPAR), the bank said. Barclays acknowledged investor caution, noting the cyclical nature of the hotel industry, but said it remains uncertain whether the pullback will be a temporary softening or the start of a deeper downturn. A modest decline in RevPAR could present a buying opportunity, but a prolonge Show less Read more
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