Berenberg sees 'buckets of opportunity' in 2024 for leisure
** Berenberg is still cautiously optimistic on leisure in 2024 and says that each of the sub-sectors has specific tailwinds supporting earnings growth
** It groups its preferred stocks to own in 2024 into "buckets of opportunity": quality, growth, value and special situations
** In the "quality bucket" it places Compass CPG.L, Hollywood Bowl BOWL.L, and Whitbread WTB.L
** Its "growth" bucket contains WH Smith SMWH.L, Flutter Entertainment FLTRF.L, and Loungers LGRS.L, while "value": Dalata Hotel DHG.I, FirstGroup FGP.L, and Accor ACCP.PA,
** "Special situation" stocks are Sodexo EXHO.PA, Mobico MCG.L, and Entain ENT.L, Berenberg says
** Catering, where it sees a large portion of the market "up for grabs" for the likes of Compass and Sodexo, remains its preferred sub-sector, followed by hotels and then gaming
** For hotels, the broker expects more muted revenue per available room (RevPAR) growth in 2024, but still sees growth given the constrained supply outlook, while demand remains robust
** In gaming, the U.S. will continue to be a driver of growth, although there may be some headwinds ex-U.S., it warns
** The broker downgrades online gambling group Kindred KINDsdb.ST to "hold" from "buy" as the competitive environment is set to intensify
** Its last "bucket" consists of least preferred stocks: InterContinental Hotels Group IHG.L, Gym Group GYM.L, and Evolution EVOG.ST; all three "hold"-rated
Reporting by Marta Frąckowiak
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