On Monday, Jefferies updated its price target for Hyatt Hotels Corporation (NYSE:H), increasing it to $152 from the previous target of $132, while maintaining a Hold rating on the stock. The revision follows Hyatt's recent business moves, including the sale of the Orlando Hyatt Regency and the acquisition of Standard International.
The sale of the Orlando Hyatt Regency is seen as a step towards a more asset-light business model, aligning with Hyatt's strategic goals. Additionally, the acquisition of Standard International is viewed as a beneficial expansion of Hyatt's brand portfolio, offering more depth.
The analyst from Jefferies noted that these recent strategic decisions by Hyatt are seen as positive. However, the Hold rating was reiterated, with the acknowledgment that limited macroeconomic visibility is a factor in tempering expectations for the company's performance.
The moves made by Hyatt are part of its ongoing strategy to reshape its business structure and brand offerings. The sale of assets like the Orlando Hyatt Regency allows the company to pivot towards a model that is less reliant on property ownership, which can provide more flexibility and potentially reduce operating costs.
The acquisition of Standard International, on the other hand, represents Hyatt's commitment to enhancing its brand portfolio and offering more diverse options to its customers. This strategic expansion could help Hyatt to attract a broader range of guests and compete more effectively in the global hospitality market.
Jefferies' updated price target and Hold rating reflect a cautious but acknowledging view of Hyatt's strategic moves in the context of the current economic environment. The firm's analysis indicates a recognition of the company's positive steps, balanced with a realistic approach to the uncertainties that lie ahead in the market.
In other recent news, Hyatt Hotels Corporation's financial performance and strategic growth have been the highlight. The company has made significant moves, including the sale of the Orlando Hyatt Regency and the acquisition of Standard International. The sale of the Orlando property aligns with Hyatt's goal of transitioning towards a more asset-light business model.
The acquisition of Standard International, the parent company of The Standard and Bunkhouse Hotels brands, is expected to enhance Hyatt's presence in the lifestyle hotel market.
Citi maintains a neutral stance on Hyatt, with a price target of $165. The firm's third-quarter 2024 earnings per share (EPS) estimate for Hyatt has been set at $0.95, and the full-year 2024 EPS estimate has been raised to $4.37. However, the fiscal year 2025 EPS estimate has been adjusted downwards to $4.04.
On the other hand, financial services firms Jefferies, Stifel, and JPMorgan (NYSE:JPM) have raised their price targets for Hyatt to $152, $151, and $164 respectively. These adjustments are a result of Hyatt's recent strategic actions and financial performance, which include a system-wide revenue per available room (RevPAR) increase of 4.7% in the recent quarter.
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