BofA analyst Shaun Kelley lowered the firm’s price target on Hilton Grand Vacations (HGV) to $38 from $50 and keeps a Neutral rating on the shares after Hilton Grand recently lowered fiscal year guidance 12% ex-Maui on weaker timeshare sales and also announced it is acquiring Bluegreen Vacations (BVH) for $1.5B in cash. While likely a good long-term strategic fit as Bluegreen increases the tour and owner pipeline, it is near-term leveraging and dilutive relative to Hilton’s stand-alone multiple, which likely weighed on the initial reaction, says the analyst, whose lower target reflects lower sales and lower finance income.
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Read More on HGV:
- Hilton Grand Vacations price target lowered to $66 from $73 at Truist
- Bluegreen Vacations downgraded to Hold at Truist on buyout by Hilton Grand
- Hilton Grand Vacations price target lowered to $53 from $56 at Deutsche Bank
- Bluegreen Vacations downgraded to Neutral from Buy at B. Riley
- Hilton Grand Vacations price target lowered to $42 from $53 at Barclays
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