Cineworld PLC (LON:CINE) saw its share price decline 7.7% amid jitters the coronavirus has already started to hits takings at the UK box office.
This worry also appears to be central to the downgrade by RBC Capital Markets, which replaced Cineworld as its top pick with Paddy Power owner Flutter Entertainment (LON:FLTR).
“Online typically has 50% from casino that should be immune while sports-betting should not suffer as long as events are taking place even behind closed doors,” said RBC in a note to clients.
RBC’s top pick in the pubs and restaurant sector is Domino’s Pizza Group PLC (LON:DOM) with its focus on the home delivery market.
It said Wagamama owner Restaurant Group (LON:RTN) “appears the riskiest due to concessions, its leisure business, and relatively high fixed charges”.
Finally, in the hospitality sector, RBC has upgraded InterContinental Hotels Group (LON:IHG) to “sector perform”.