On Tuesday, Truist Securities adjusted its outlook on Hilton Grand Vacations (NYSE:HGV) shares, increasing the price target to $71.00, up from the previous $70.00. The firm sustained a Buy rating.
The adjustment comes as Truist Securities revises its financial projections for the company. The 2024 Adjusted EBITDA forecast has been increased to $1,244 million, up from $1,238 million. Concurrently, the earnings per share (EPS) estimate for 2024 has been revised upward to $5.00 from the earlier projection of $3.47.
Looking ahead to 2025, the analyst's Adjusted EBITDA prediction has been lifted to $1,333 million from the prior estimate of $1,321 million. The EPS forecast for the same year has also seen an enhancement, now set at $4.12 compared to the previous $3.96.
The new price target is rooted in an elevated blended multiple of 8.9 times, a slight increase from the previous 8.8 times, applied to the sum-of-the-parts on the estimated 2025 EBITDA. This revision reflects a more optimistic valuation of Hilton Grand Vacations' future financial performance.
According to the analyst, Hilton Grand Vacations' shares are currently trading at multiples of 5.5 times and 6.4 times the firm's 2024 and 2025 EBITDA estimates, respectively. This suggests a favorable view of the stock's value relative to its projected earnings before interest, taxes, depreciation, and amortization.
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