Evercore ISI Upgrades Hyatt Hotels (H) to Outperform

Evercore ISI analyst Diane Pfenningwerth upgraded Hyatt Hotels (NYSE: H) from In Line to Outperform with a price target of $175.00.

The analyst comments "Summary: Upgrading Hyatt to Outperform as the post earnings selloff creates an attractive entry point on shares. H shares have trailed larger cap lodging brand peers by 15 %-points YTD and ~ 30 %-points LTM. The company made significant progress in asset sales in 2024, which is a headwind to FY25 EBITDA growth (we assume +4% y/y), but has translated to higher fee-based contribution. In our view, recent pullback vs. peers has in part been driven by the complexity of another >$2b asset sell-down program. However, we have become more comfortable with the idea that the Playa owned assets might not sit in Hyatt’s hands for very long as the company has received indications of interest for the purchase of Playa’s owned real estate portfolio upon a successful acquisition of the company. Our own channel checks suggest that private equity and third-party management platforms have warmed up to the all-inclusive space post-pandemic. Hyatt believes there is a chance that Playa assets will be purely fee-based by the end of this year. H shares trade at ~13x ’26 EV/EBITDA vs. large cap peer mean of ~17x. Upgrading to Outperform, PT unchanged at $175."

For an analyst ratings summary and ratings history on Hyatt Hotels click here. For more ratings news on Hyatt Hotels click here.

Shares of Hyatt Hotels closed at $137.25 yesterday.

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