Peel Hunt downgrades Accesso Technology to 'hold'
Peel Hunt downgraded on Friday to 'hold' from 'buy' as it pointed to falling foot traffic.
Accesso provides ticketing, point of sale, virtual queuing, distribution and guest experience management services.
Peel Hunt said that amid the recent stifling weather, air conditioning sales may be climbing, but foot traffic at theme parks appears to be down.
It noted that data from Placer.ai reported by Bloomberg shows Six Flags' foot traffic down 17% in the 30 days to 20 June, worse since its first-quarter earnings in May.
"As accesso's largest client, this does not bode well for its highly operationally-geared volume-based model," Peel Hunt said, adding that it was cutting its EBITDA estimate by 10%.
"The share price has appreciated 6% since February, when we saw further upside potential given the company's cautious guidance.
"However, the hot weather has changed ACSO's outlook. Our EBITDA downgrade leads us to cut our TP by the same proportion to 540p, and our rating from buy to hold."
At 1050 BST, the shares were down 1.1% at 520.p.
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