In a report released today, Chris Woronka from Deutsche Bank maintained a Buy rating on Playa Hotels & Resorts (PLYA – Research Report), with a price target of $15.00.
Chris Woronka’s Buy rating for Playa Hotels & Resorts (PLYA) is based on a combination of factors including the company’s anticipated solid free cash flow generation in the fiscal year 2024 and the potential continuation of share buybacks. He acknowledges market concerns over resort pricing but maintains a confident outlook for PLYA’s all-inclusive resorts that offer a strong value proposition to consumers. Woronka expects that the consumer appeal of PLYA’s offerings, coupled with favorable air travel trends into PLYA’s key markets, will support occupancy gains in 2024.
Despite an expected modest dip in EBITDA, the analyst perceives PLYA as undervalued compared to its peers and maintains a positive outlook based on net asset value analysis, suggesting a fair market value that supports a $15 target price. He also points to a robust share repurchase program as evidence of management’s confidence in the company’s financial health, further underpinning the Buy recommendation. Adjustments to the valuation model and price target have been made to reflect current market conditions and interest rate trends, yet Woronka continues to advocate for investment in PLYA at current price levels.
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Playa Hotels & Resorts (PLYA) Company Description:
Playa Hotels & Resorts NV engages in the ownership, operation, and development of all-inclusive resorts in beachfront location destinations in Mexico and the Caribbean. It operates through the following geographical segments: Yucatán Peninsula, Pacific Coast, and Caribbean Basin. The company was founded on March 28, 2013 and is headquartered in Amsterdam, the Netherlands.
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