Accor climbed on the Paris Bourse on Wednesday, following an upgrade by Barclays, which sees no justification for the stock's underperformance relative to its peers.

The stock gained over 2% at around 1:45pm, making it the biggest riser on the Paris CAC 40 index, itself down 0.4%.

In a note, the broker points out that the stock has significantly underperformed its peers over the past 12 months, and is now trading at a 34% discount to InterContinental Hotels Group (IHG).

The stock is also trading at a discount to its own historical average.

Yet, he argues, Accor generates a much higher revenue per available room (RevPAR) than its competitors, and its four-year EPS growth target of 15% is close to that of IHG, taking share buybacks into account.

While catalysts remain limited in the short term, we see this bout of weakness as an attractive entry point from a long-term perspective", he concludes.

Barclays is therefore raising its recommendation on the stock from 'weighted in line' to 'overweight', with a price target raised from €33 to €48.

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