Hyatt's Transformation Into Asset-Lite Model: Analyst On Growth Potential Amidst Optimistic Group Bookings
Portfolio Pulse from Nabaparna Bhattacharya
Stifel analyst Simon Yarmak reiterated a Hold rating on Hyatt Hotels Corporation (NYSE:H), lowering the price target to $115 from $119. Hyatt has transformed into an asset-lite company and aims to reduce owned and leased real estate to 20% by late 2024. The company has multiple growth levers with a quality portfolio of brands and the largest relative pipeline. Group revenue for Q2 rose by around 14% YoY, aligning closely with 2Q19 figures. However, net debt to EV of 19.8% is slightly above the industry average of 19.2%. The analyst also lowered the EPS estimates for FY23, FY24, and FY25.
September 22, 2023 | 6:39 pm
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NEUTRAL IMPACT
Hyatt's transformation into an asset-lite model and its slightly higher net debt to EV ratio have led to a lowered price target by Stifel analyst. However, the company's growth potential remains strong.
The news directly pertains to Hyatt Hotels Corporation and its financial performance. The lowered price target by the analyst could potentially impact investor sentiment, but the company's strong growth potential and optimistic group bookings could balance out any negative impact.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100