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raymond james analyst william crow reiterated the outperform rating on the shares of Hilton Worldwide Holdings Inc (NYSE: HLT) and raised the price target to $165 from $150.
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Company reports better-than-expected Q4 results and guidance, calls for 4-8% RevPAR growth
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Despite near-term macro headwinds, management is seeing no signs of weakening fundamentals and believes rising demand, coupled with historically low industry supply growth, should fuel strong pricing.
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Business transient demand continued to improve during 4Q, with management noting resilience/growth among small and medium-sized businesses, the analyst said.
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Management expects Group business trends to continue to accelerate this year, with Group momentum YTD up 25% y/y and close to 2019 levels, with provisional bookings up 20% y/y, pricing in the low single digits, And January lead volume at an all-time high.
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The analyst commented that since announcing Spark, its new premium economy brand, Hilton already has 200 conversions in various stages of negotiation.
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read this also, Hilton Hotels launches new brand ‘Spark by Hilton’
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Management suggested that 98% of its Spark-conversion pipeline comes from non-Hilton brands.
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Management forecast a flat or modest reduction in pricing power in 2H and noted that better-than-expected occupancy in 2H could provide an upside to the initial 2023 guidance.
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The unit growth and share buyback stories remain largely intact, the analyst said.
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Analysts prefer HLT to its C-corp peers here, but we see more upside for the lodging REIT in the near term.
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Over the long term, however, analysts continue to prefer asset-light, fee-driven, capital return-focused brand companies.
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price action:Last Check On Monday HLT shares are trading up 1.60% at $149.52.
Latest Rating for HLT
|
date |
firm |
Work |
From |
To |
|---|---|---|---|---|
|
February 2022 |
Wells Fargo |
maintains the |
equal weight |
|
|
February 2022 |
macquarie |
maintains the |
neutral |
|
|
February 2022 |
raymond james |
maintains the |
to overcome |
View more analyst ratings for HLT
View Latest Analyst Ratings
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This article Boosts Hilton’s Q4 Outperformance and FY23 Guidance Prompts 10% Price Target by this analyst originally appeared on Benzinga.com
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