Mizuho Securities analyst Benjamin Chaiken has maintained their bullish stance on H stock, giving a Buy rating on February 4.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
Benjamin Chaiken’s rating is based on a combination of factors surrounding Hyatt’s strategic acquisition of Playa Hotels. The transaction, valued at approximately $2.6 billion including debt, aligns with market expectations and is seen as a positive long-term move. Chaiken notes that the acquisition will boost Hyatt’s asset-light management fees and strengthen its portfolio, which is advantageous for upcoming credit card negotiations and enhancing guest loyalty.
Additionally, the deal is expected to aid Hyatt’s adjacent distribution businesses. Playa’s position as a leading owner and operator of all-inclusive resorts in key regions like Mexico and the Caribbean adds value to Hyatt’s offerings. Despite some investor concerns about potential delays in Hyatt’s asset-light strategy, the anticipated proceeds from Playa’s owned assets and the overall strategic fit suggest a favorable outlook for Hyatt’s future growth and profitability.
In another report released on February 4, Wells Fargo also maintained a Buy rating on the stock with a $170.00 price target.