Park Hotels & Resorts, the Real Estate sector company, was revisited by a Wall Street analyst today. Analyst Daniel Politzer from J.P. Morgan maintained a Sell rating on the stock and has a $10.00 price target.
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Daniel Politzer has given his Sell rating due to a combination of factors affecting Park Hotels & Resorts. The company is facing ongoing operational challenges, particularly in key markets like Hawaii, which contributes significantly to its EBITDA. Additionally, there is a high exposure to organized labor, which could lead to increased costs, especially with upcoming labor negotiations.
Another concern is the company’s elevated net leverage, which stands at approximately 6x, potentially keeping its valuation multiple depressed. Furthermore, the transaction environment is episodic, posing challenges for Park Hotels & Resorts in achieving its targeted asset sales. These factors contribute to a challenging outlook for the company, making it difficult for RevPAR to outpace operating expense growth in the coming years.
Politzer covers the Consumer Cyclical sector, focusing on stocks such as Boyd Gaming, Hilton Worldwide Holdings, and Caesars Entertainment. According to TipRanks, Politzer has an average return of 9.7% and a 55.95% success rate on recommended stocks.