Analyst Carlo Santarelli from Deutsche Bank maintained a Hold rating on Hilton Worldwide Holdings (HLT – Research Report) and keeping the price target at $176.00.
Carlo Santarelli has given his Hold rating due to a combination of factors including Hilton Worldwide Holdings’ performance and future projections. The company outperformed its first quarter guidance by approximately $50 million, though this included around $10 million due to favorable timing of expenses, which may shift to later periods. Additionally, adjustments were made for foreign exchange rates and improved performance in Ownership and Managed Franchise (O&L and IMF). Despite this beat, the first quarter Revenue per Available Room (RevPAR) growth was on the lower end, and the full year RevPAR guidance remains unchanged, which might suggest a conservative outlook on growth.
Santarelli also notes that Hilton raised its net unit growth (NUG) guidance for the year, which is a positive indicator of expansion. However, the updated full year adjusted EBITDA guidance was only slightly raised, and the adjusted earnings per share (EPS) guidance, while increased, does not account for future share repurchase activities. These factors, combined with the first quarter RevPAR results and the unchanged full year RevPAR outlook, likely contribute to a cautious stance. Moreover, the second quarter RevPAR guidance, albeit positively influenced by calendar shifts, does not assume a significant pickup in growth, supporting the Hold rating.
In another report released on April 22, Bernstein also maintained a Hold rating on the stock with a $214.00 price target.
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Hilton Worldwide Holdings (HLT) Company Description:
Virginia-based Hilton Worldwide Holdings, Inc. is a hospitality company, which owns, leases, manages, develops, and franchises hotels and resorts. It operates through two segments, Management and Franchise, and Ownership.
