In a report released today, RJ Milligan from Raymond James upgraded Hyatt Hotels (H – Research Report) to a Buy, with a price target of $165.00.
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RJ Milligan has given his Buy rating due to a combination of factors, primarily the recent announcement by Hyatt Hotels to sell its entire Playa owned real estate portfolio. This move is seen as a significant positive development as it removes a major overhang on the stock, which had been a concern for investors. The transaction was completed sooner than anticipated and involved the entire portfolio, accelerating the timeline for expected asset sales by several years.
Furthermore, despite some investor concerns about the pricing of the transaction, Milligan believes that the progress on these asset dispositions is more critical given the current macroeconomic environment. The valuation of Hyatt shares is considered attractive, especially when compared to its peers, with Hyatt trading at a notable discount. Additionally, the expected acceleration in EBITDA growth by 2026 further supports the Buy rating, as it aligns with the company’s strategic shift towards an asset-light model.
According to TipRanks, Milligan is a 4-star analyst with an average return of 8.1% and a 60.67% success rate. Milligan covers the Real Estate sector, focusing on stocks such as CTO Realty Growth, Kimco Realty, and Kite Realty Group.
In another report released yesterday, Bernstein also assigned a Buy rating to the stock with a $167.00 price target.