Buy Rating Affirmed for Wyndham Hotels & Resorts Amidst Strong Financial Performance and Expansion Potential

Deutsche Bank analyst Steven Pizzella has maintained their bullish stance on WH stock, giving a Buy rating on April 22.

Steven Pizzella has given his Buy rating due to a combination of factors surrounding Wyndham Hotels & Resorts’ financial performance and forward-looking metrics. Pizzella noted that Wyndham’s first quarter 2024 adjusted EBITDA slightly surpassed estimates, which was mainly the result of higher ancillary revenue and stronger-than-expected EBITDA margins. Despite a modest decline in RevPAR, Wyndham reaffirmed its RevPAR guidance for the year, indicating confidence in future performance. Additionally, Wyndham’s net room growth accelerated and its pipeline for new rooms increased, both of which are indicative of solid expansion potential.

Pizzella was further encouraged by Wyndham’s capital return activities, which included a significant repurchase of stock and an attractive dividend yield, positioning the company favorably among its peers. The comprehensive view of Wyndham’s results, coupled with the expectation of RevPAR acceleration for the rest of the year, led Pizzella to posit that the company’s shares hold a substantial upside from the current levels. His analysis suggests that at the projected adjusted EBITDA multiple, which aligns with historical trading patterns, Wyndham’s stock presents a promising investment opportunity with an approximate 25% upside potential.

According to TipRanks, Pizzella is a 2-star analyst with an average return of -0.8% and a 37.93% success rate. Pizzella covers the Consumer Cyclical sector, focusing on stocks such as Wyndham Hotels & Resorts, Accel Entertainment, and NeoGames.

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Wyndham Hotels & Resorts (WH) Company Description:

Wyndham Hotels & Resorts, Inc. engages in the franchise and operation of hotels under the Wyndham brand. It operates through the following segments: Hotel Franchising and Hotel Management. The Hotel Franchising segment offers licenses of brand names and associated trademarks to hotel owners under long-term franchise agreements. The Hotel Management segment provides management services. The company was founded in 1990 and is headquartered in Parsippany, NJ.