Hilton Worldwide Holdings, the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Ari Klein from BMO Capital maintained a Hold rating on the stock and has a $265.00 price target.
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Ari Klein has given his Hold rating due to a combination of factors affecting Hilton Worldwide Holdings. The company reported a better-than-expected second-quarter performance with EBITDA and EPS surpassing estimates, and a notable improvement in net unit growth. However, the revenue per available room (RevPAR) showed a slight decline, reflecting challenges from broader economic conditions.
Despite the positive aspects such as strong net unit growth and capital returns, the outlook for the third quarter was less optimistic, with projections for RevPAR and EBITDA falling short of expectations. Additionally, Hilton’s shares are trading at a premium valuation, which could limit upside potential. These mixed signals contribute to the Hold rating, as the stock may not see significant movement in the near term.
According to TipRanks, Klein is a 4-star analyst with an average return of 4.6% and a 57.00% success rate. Klein covers the Real Estate sector, focusing on stocks such as Equinix, Ryman, and Pebblebrook Hotel.
In another report released on July 21, Bernstein also maintained a Hold rating on the stock with a $261.00 price target.