Jefferies lifts Hyatt Hotels price target to $135 from $120

On Wednesday, Jefferies analyst firm raised the price target for Hyatt Hotels Corporation (NYSE:H) to $135, up from the previous $120, while maintaining a Hold rating on the stock. The adjustment reflects a positive view of the company’s overall business performance, including its development, branding efforts, and capital management. The stock, currently trading at $136.50, has shown remarkable strength with a 10.21% gain over the past week. According to InvestingPro data, the company maintains a "GOOD" financial health score, operating with moderate debt levels.

The analyst from Jefferies acknowledged the strategic merit of Hyatt’s recent acquisition of Playa Hotels & Resorts (PLYA), noting it as a positive move in principle. However, the complexities involved in the acquisition process were highlighted as a factor that could obscure the future outlook, particularly in terms of demand visibility and the final outcome of the acquisition.

The report further mentioned the broader challenges facing the industry, with macro pressures affecting booking activities across the hotel sector. These pressures are seen as potential obstacles that could impact the demand for Hyatt’s services.

Despite these concerns, Jefferies’ long-term perspective on Hyatt Hotels remains balanced. The firm’s reiteration of the Hold rating indicates a cautious optimism, acknowledging the company’s solid execution but also recognizing the uncertainties that could influence Hyatt’s performance going forward.

In summary, while Jefferies sees positive aspects in Hyatt’s business strategy and recent acquisition, the firm also points out the limited visibility in market demand and the outcomes of the acquisition as reasons to maintain a Hold rating despite the increased price target.

In other recent news, Hyatt Hotels Corporation reported its first-quarter 2025 earnings, exceeding analysts’ expectations with an earnings per share (EPS) of $0.46, surpassing the forecast of $0.36. However, the company’s revenue fell short of projections by $40 million, reaching $1.67 billion. Despite the revenue miss, Hyatt experienced a 24% increase in adjusted EBITDA, demonstrating strong financial performance. The company’s strategic focus on an asset-light model and international market strength, particularly in the Asia Pacific region, contributed to this robust outcome. Hyatt’s stock saw a notable rise following the earnings announcement, reflecting positive investor sentiment. The company is also advancing discussions for the sale of Playa’s real estate, with expectations to enter into an agreement soon. Furthermore, Hyatt’s pipeline remains strong, with a 7% increase in room growth year-over-year. Analyst firms like Bank of America and Baird have shown interest in Hyatt’s performance and strategic direction, indicating a positive outlook from financial analysts.

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