Bernstein analyst Richard Clarke has maintained their bullish stance on H stock, giving a Buy rating on February 14.
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Richard Clarke has given his Buy rating due to a combination of factors that, despite recent setbacks, indicate a potential for future growth and recovery. Despite a 9% drop attributed to a 7% EBITDA miss and conservative guidance below consensus, these challenges are seen as temporary and largely due to non-core business segments and unexpected disposal impacts.
Clarke believes that Hyatt’s transition to an ‘asset-light’ model, with expectations of predictable earnings and high free cash flow conversion, will eventually lead to a recovery as the company continues to refine its strategic focus. Furthermore, the current valuation already reflects these challenges, trading at a discount compared to peers like Hilton and Marriott, providing a potential upside. Additionally, Clarke sees potential catalysts such as credit card partnerships, asset disposals, and market reopenings that could drive upgrades in room growth and revenue per available room (RevPAR) forecasts throughout the year.
Based on the recent corporate insider activity of 65 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of H in relation to earlier this year.