On this, the analysts have forecasted Mandarin Oriental’s revenue per average room (RevPAR) in the FY2022 and FY2023 to come in at US$251 and US$297, or at 91% and 107% of the group’s pre-Covid-19 levels.
DBS Group Research analysts Tabitha Foo and Derek Tan have initiated coverage on Mandarin Oriental with a “buy” call and a target price of US$2.30 ($3.21), as they are bullish on the counter’s recovery prospects on the back of the heightened travel demand.
“The immense pent-up demand of travellers is evident after more than two years of disrupted travel plans and pandemic fatigue. We believe that the worst is over for Mandarin Oriental and a robust recovery awaits,” they write in their report dated Aug 29.
