©Reuters.
BMO Capital Markets on Wednesday revised its outlook for: hilton worldwide Holdings (NYSE:) increased its price target to $215 from $203 while maintaining a Market Perform rating.
The adjustment follows Hilton's first Investor Day since 2016, where Hilton released improved forecasts that included annual compound annual growth rates (CAGR) from 2023 to 2026. The expected CAGR is 3% in revenue per available room (RevPAR), or 6.5. Net unit growth (NUG) is %, commission is 10%, EBITDA is 9.5%, and earnings per share (EPS) is 15%.
This analysis highlighted Hilton's long-term growth potential. This is supported by a clear market share increase in the development pipeline and a RevPAR index premium of 116. This growth is further supported by a $10 billion capital return plan to shareholders. Additionally, Hilton has opportunities to expand through luxury brands, geographic growth, moving to different chain sizes, and introducing new brands.
However, BMO Capital believes that Hilton's stock valuation, with Hilton's enterprise value to EBITDA (EV/EBITDA) ratio of 18.4 times and 2024 expected price/earnings ratio (PER) of 29.6 times, provides a balance between risk and reward. He pointed out that this reflects the scenario of As a result, the company suggests investors may consider waiting for a more suitable entry point to become more positive on the stock.
BMO Capital's report provides insight into Hilton's strategic direction and financial health, as the company aims to leverage its strong brand presence and operating performance to deliver shareholder value in the coming years. ing. Hilton's capital gains and expansion efforts indicate a positive outlook for future growth and profitability.
This article was generated with the help of AI and reviewed by an editor. Please see our Terms of Use for more information.
