Daniel Politzer, an analyst from Wells Fargo, maintained the Hold rating on Hilton Worldwide Holdings (HLT – Research Report). The associated price target remains the same with $200.00.
Daniel Politzer has given his Hold rating due to a combination of factors involving Hilton Worldwide Holdings’ performance and market valuation. The first quarter’s adjusted EBITDA surpassed estimates and guidance by 6-7%, despite revenue per available room (RevPAR) results being at the lower end of the company’s guidance. This beat was largely attributable to a stronger international segment, which offset some of the softer performance in the U.S. market. Additionally, Hilton maintained its full-year RevPAR guidance at 2-4%, with a slight increase in EBITDA expectations, mostly driven by the first quarter’s performance. The company’s diversified global portfolio and growth in non-RevPAR fees have contributed to its successful execution.
Despite Hilton’s stock outperforming the S&P 500, Politzer remains neutral with a Hold rating, mainly due to valuation concerns. With an enterprise value to EBITDA ratio of 17/16x for 2024/25 estimates, the stock is trading close to his price target of $200. Furthermore, the Hold rating reflects the balance between Hilton’s efficient operations, its ability to capitalize on upscale market segments, and the potential risks associated with valuation and market expectations. Hilton has indeed increased its EBITDA forecast for the full year, but this adjustment is not enough to significantly change the analyst’s long-term thesis or price target, hence the Hold rating remains in place.
In another report released today, BMO Capital also maintained a Hold rating on the stock with a $215.00 price target.
HLT’s price has also changed moderately for the past six months – from $149.650 to $204.700, which is a 36.79% increase.
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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.
