CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We lift our 12-month target price to $202 from $171 on 2024 EV/EBITDA of 18.5x, a discount to HLT’s five-year average forward EV/EBITDA of 22.5x, justified by the risk of continued softness in net rooms growth. We keep our 2023 EPS view of $6.10, but raise 2024’s to $7.06 from $6.96. Despite the recent run-up in HLT’s share price, we think there is still further upside potential for shares given the Fed’s pivot to a more dovish stance. We believe that the anticipated interest rate cuts factored into the market currently could bolster consumer confidence and encourage more discretionary spending on travel. Simultaneously, this should enhance developers’ ability to secure financing, fostering accelerated net rooms growth for HLT and the broader hotel industry. As a result, this more favorable macro backdrop should strengthen HLT’s ability to further elevate both its top- and bottom-line growth.