Hilton Worldwide Holdings: Balanced Risk/Reward Leads to Hold Rating

In a report released today, Ari Klein from BMO Capital maintained a Hold rating on Hilton Worldwide Holdings (HLT – Research Report), with a price target of $243.00.

Ari Klein has given his Hold rating due to a combination of factors that reflect both positive performance and balanced risk/reward considerations. Hilton Worldwide Holdings has shown promising results with better-than-expected EBITDA and EPS, driven by improvements in RevPAR and operational efficiencies, particularly in owning and leasing profits and reduced general and administrative expenses. However, the fee growth appears somewhat modest compared to RevPAR, which suggests that while there is growth, it may not be as robust as anticipated.
Additionally, Hilton’s conservative outlook for 2025, although in line with expectations, indicates a modest increase in RevPAR. The global travel trends are supportive of growth, yet the valuation of Hilton suggests a balanced risk versus reward situation. This balanced outlook, along with the performance metrics, leads to a Hold rating as the potential for significant upside seems limited at this point.

In another report released yesterday, Mizuho Securities also downgraded the stock to a Hold with a $263.00 price target.