Friday, July 1

Meliá Hotels returns to September, although with a potential of 26%

Melia Hotels was once again one of the worst hit stocks on the Spanish stock market on account of the falls that it presented due to the effect of the global arrival of the omicron variant that once again called into question, since the plummeting of last November 26, the recovery. And above all it punished a tourism sector that was already beginning to show itself with a roadmap on the way to its recovery.

The results up to September had endorsed it, with a 65% reduction in losses and a substantial improvement in the third quarter, already with EBITDA, its gross operating result in positive, with almost 65 million and liquidity that exceeded 439.5 million euros. But the omicron effect had broken their levels, already punished, with a November in which it had lost more than 13% in its price.

In its stock chart we see that the first good news and optimism regarding a highly contagious omicron variant and already extended to 38 countries, but not seriously, at least in these early stages of the variant at a global level, Print a consecutive recovery, with three sessions up 6.72%, despite the double-digit declines in the previous 20 sessions for the stock. So far this year, a slightly positive balance with rises somewhat higher than 4.2%

Meliá Hotels annual value price

Your last recommendation, comes from the New Yorker Jefferies, which gives you a price target of 7.5 euros per share with buying advice for the value, its present potential reaches 26%.

While Meliá Hotels has confirmed that will build a theme park in the Dominican Republic and two new hotels in a joint venture with the American Falcon`s Beyond to go beyond the traditional concept of “sun and beach”, in Punta Cana with a total investment that will reach the fall of 2022.

And also according to the S&P Global Corporate Sustainability Assessment, it has been repositioned as the most sustainable hotel group in Europe and the second in the world ranking. And it does so, in addition, for the third consecutive year since the pandemic began.

For IG analyst Diego Morín Meliá Hotels “is in a very wide lateral range, making decreasing maximums and above all, trying to get away from this main support which is 5.50 euros per share. We already know that the omicron variant is hurting the value, with possible cancellations of reservations and with speculation as well as investors. But I believe that the two important levels that must be watched due to this corrective phase in which the value is found are the 5.50 and 5.20 euros, which act as support ”.

José Antonio González, Technical Analyst of Investment Strategies highlights that Meliá Hotels “registers a downward crossing between its medium and long-term moving averages as a result of a strong short-term downward momentum, a corrective process that reaches the support zone of 5.538 / 5.432 euros per share, a level from which it would not be uncommon to witness a short-term recovery. Nevertheless, its violation, would enable to update downward objectives towards 5,194 / 4,936 euros per share ”.

Meliá Hotels on daily chart with average amplitude range in percentage, MACD oscillator and trading volume

Meliá Hotels technical value analysis

3 points out of 10 possible for value is the total score which Meliá Hotels brand according to the premium technical indicators prepared by Investment Strategies. The trend that marks the value is downward in its two aspects, both in the medium and long term, the mixed total moment, slow positive and fast negative for the value. Regarding the volume of business, it is growing in the medium and long term and volatility is marked as increasing, both in the medium and long term for Meliá Hotels.

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