BUZZ-Accor, Flutter and Compass are BofA's leisure picks in Europe on US-driven growth

BofA Global Research says strong American travel demand, North American outsourcing opportunities and higher U.S. gaming penetration are driving growth for European leisure players

The analysts choose hotel operator Accor ACCP.PA, food service firm Compass CPG.L and online sports betting company Flutter FLTRF.L - double listed in New York and London - as their top picks for the sector

"American travellers should continue their love affair with European travel (both for business and pleasure), boding well for hotels," BofA says

Seeing no end to the travel cycle in 2025, it expects higher EPS growth for asset-light hotels at around 17.5% on average, backed by net system growth, margin expansion and share buybacks

European food services and caterers should benefit from new first-time outsourcing opportunities in North America, which are expected to fuel organic growth to above pre-pandemic levels in 2025, BofA adds

"Prime examples are University and Healthcare clients in North America, where (more than) 60% of food service solutions are self-operated," it says