Travel+Leisure Faces Headwinds In Two Of Its Main Business Units, Says Analyst
Portfolio Pulse from Shivani Kumaresan
Mizuho analyst Ben Chaiken initiated coverage on Travel+Leisure Co (NYSE:TNL) with a Neutral rating and a $55 price target, citing headwinds in the Vacation Ownership Interests (VOI) and Travel & Membership segments. The VOI segment faces challenges from accelerating new owner sales and rising interest rates, leading to a $30 million EBITDA headwind in FY24. The Travel & Membership segment is impacted by industry consolidation and lack of traction in TNL's travel club. Despite short-term challenges, the long-term outlook remains positive.
March 26, 2024 | 6:12 pm
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NEUTRAL IMPACT
Travel+Leisure Co faces headwinds in its VOI and Travel & Membership segments, impacting its short-term performance, but has a positive long-term outlook according to Mizuho analyst Ben Chaiken.
The neutral rating and $55 price target by Mizuho reflect the mixed impact of short-term headwinds in the VOI and Travel & Membership segments against a positive long-term outlook. The specific mention of a $30 million EBITDA headwind in FY24 due to challenges in the VOI segment and structural headwinds in the Travel & Membership segment are critical factors. However, the analyst's positive view on the long-term setup, including the abating of the VOI new owner mix headwind and the flattening of the financing headwind, supports a neutral short-term score.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 100