Morgan Stanley analyst Stephen Grambling has maintained their neutral stance on H stock, giving a Hold rating today.
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Stephen Grambling has given his Hold rating due to a combination of factors influencing Hyatt Hotels’ financial outlook. Despite Hyatt’s ability to surpass expectations in its recent quarterly earnings, primarily driven by stronger performance in its Owned and Leased properties, there are signs of slowing revenue per available room (RevPAR). This deceleration in RevPAR growth raises concerns about the company’s ability to sustain its current momentum.
Additionally, while the acquisition of Playa Hotels & Resorts is expected to contribute positively to EBITDA, it introduces some complexity and is anticipated to negatively impact free cash flow. The company’s decision to reinstate capital returns is a positive signal, yet it only represents a modest portion of the market cap. Overall, these mixed signals suggest a cautious approach, justifying the Hold rating as investors assess the balance between potential growth and underlying challenges.
Grambling covers the Consumer Cyclical sector, focusing on stocks such as Hyatt Hotels, Las Vegas Sands, and DraftKings. According to TipRanks, Grambling has an average return of 6.7% and a 63.31% success rate on recommended stocks.
In another report released today, Barclays also maintained a Hold rating on the stock with a $156.00 price target.