In a report released today, Ari Klein from BMO Capital maintained a Hold rating on Park Hotels & Resorts (PK – Research Report), with a price target of $11.00.
Ari Klein has given his Hold rating due to a combination of factors, primarily revolving around Park Hotels & Resorts’ recent financial performance and future outlook. Although the company reported a better-than-expected EBITDA and FFO for the first quarter, it has revised its 2025 guidance downward, reflecting concerns over macroeconomic uncertainties. The company’s RevPAR guidance suggests modest growth, which is slightly above its peers, but the overall group pace has slowed significantly.
Additionally, Park Hotels & Resorts has narrowed its core asset list and is committed to significant asset dispositions in 2025, which may prove challenging given the current economic outlook. The company has also lowered its expectations for RevPAR, EBITDA, and adjusted FFO, aligning with a more cautious view of the market conditions. These adjustments, coupled with the uncertain macroeconomic environment, contribute to the Hold rating, indicating a balanced view of potential risks and opportunities.
In another report released on April 22, Morgan Stanley also maintained a Hold rating on the stock with a $10.00 price target.