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Investing.com - TD Cowen raised its price target on Hilton Worldwide (NYSE:HLT) to $297.00 from $282.00 on Tuesday, while maintaining a Buy rating on the hotel operator’s stock. The new target sits well above the current trading price of $264.27, though InvestingPro analysis suggests the stock is trading above its Fair Value.
The firm noted that while Hilton’s third-quarter RevPAR (revenue per available room) was soft as expected, the company anticipates a rebound of more than 200 basis points quarter-over-quarter in the fourth quarter, despite headwinds from the U.S. government shutdown. With impressive gross profit margins of 77.09% and a robust market capitalization of $61.39 billion, InvestingPro data reveals Hilton’s strong operational efficiency.
TD Cowen cited reasons for optimism in the U.S. market for 2026, including potential inbound travel declines and April 2025 tariff uncertainty, as well as the upcoming World Cup.
The analyst highlighted Hilton’s strength in both new construction and property conversions, which drove unit growth to 6.5-7% from the previous 6-7% range, while fee revenue continues to outpace algorithmic expectations.
Based on these factors, TD Cowen raised its 2026 earnings per share estimate by 5%, with the new $297 price target representing a price-to-earnings multiple of 33 times 2026 estimated earnings.
In other recent news, Hilton Worldwide Holdings Inc. reported its third-quarter 2025 earnings, surpassing analyst expectations with an earnings per share (EPS) of $2.11, compared to the forecasted $2.06. The company’s revenue also exceeded projections, reaching $3.12 billion against the anticipated $3.02 billion. These results highlight a strong performance for the quarter, reflecting positively on the company’s financial health. Additionally, Goldman Sachs has adjusted its price target for Hilton Worldwide to $285, up from $274, while maintaining a Neutral rating on the stock. This adjustment comes after what Goldman Sachs described as a "solid EBITDA beat," demonstrating Hilton’s strong execution and resilient business model. Despite a reduction in Revenue Per Available Room (RevPAR), the company’s performance has been noteworthy. These developments indicate a period of growth and stability for Hilton Worldwide.
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