Written by Sam Bogda
An analyst from Berenberg upgraded shares of Hilton (NYSE: NYSE:, Hyatt Hotels (NYSE: NYSE:), Marriott (NASDAQ:) to buy on hold Thursday.
The analyst also raised price-per-share targets, with Hilton boosting to $152 from $140, Hyatt increasing to $105 from $85, and Marriott increasing to $185 from $165.
He explained that the accelerated recovery in the performance of the accommodation names was not adequately reflected in the stock price movements due to the continuing concerns about the macro environment outlook.
“Our analysis indicates that these concerns are exaggerated and that the Revenue Per Available Room (RevPAR) projections for 2023 and 2024 will strengthen further. Against this background, the clear evidence from the COVID-19 pandemic is the resilience of the “light asset structure” and there is no evidence of a Increased structural risks to business travel or migration away to disruptive agents such as Airbnb and online travel agencies,” the analyst wrote.
He added, “The hotel sub-sector is now our favorite play among our coverage world, and we’re raising prices for Hilton, Hyatt and Marriott to buy while raising our target price for all global operators.”