Bernstein analyst Richard Clarke maintained a Buy rating on Hyatt Hotels (H – Research Report) yesterday and set a price target of $173.00.
Richard Clarke has given his Buy rating due to a combination of factors related to Hyatt’s strategic expansion and market positioning. The introduction of the new ‘Hyatt Select’ brand is a significant move, targeting the Upper Midscale segment in the Americas with plans for global expansion. This brand aims to capture a market where Hyatt currently has limited presence, focusing on short stays in secondary and tertiary markets.
Hyatt’s strong brand recognition and extensive loyalty programs provide a competitive edge, making it an attractive option for conversions from smaller brands. The lean operating model and lower upfront investment required for Hyatt Select properties enhance owner ROI, making it a compelling choice for investors. Although the brand’s impact on fiscal year 2025 expectations may be minimal, it is anticipated to contribute positively in 2026, capitalizing on the relatively weak competition in the Midscale space.
Clarke covers the Consumer Cyclical sector, focusing on stocks such as Hyatt Hotels, Royal Caribbean, and TripAdvisor. According to TipRanks, Clarke has an average return of 3.1% and a 47.50% success rate on recommended stocks.
In another report released on February 23, Truist Financial also maintained a Buy rating on the stock with a $163.00 price target.