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On Thursday, Mizuho (NYSE:MFG) Securities adjusted its financial outlook for Travel + Leisure Co. (NYSE:TNL), increasing the price target to $64 from the previous $55 while maintaining a neutral stance on the stock. This revision follows Travel + Leisure’s release of its fourth-quarter earnings for the fiscal year 2024, which presented an adjusted EBITDA of $252 million. This figure slightly surpassed Mizuho’s projection of $253 million and the general Wall Street consensus of $248.4 million. The stock currently trades at $57.86, near its 52-week high of $58.95, reflecting strong momentum with a 46% gain over the past year. According to InvestingPro analysis, the company maintains a perfect Piotroski Score of 9, indicating robust financial strength.
The company also provided guidance for the first quarter EBITDA, estimating it to be between $195 million and $205 million, aligning closely with Mizuho’s forecast of $197 million and slightly above the Street’s expectation of $198.5 million. Looking ahead to the full fiscal year 2025, Travel + Leisure introduced an EBITDA range of $955 million to $985 million. This projection sits below Mizuho’s expectation of $994 million but above the Street’s anticipation of $970.9 million. InvestingPro data shows the company’s strong financial health with an overall score of 3.08 (rated as GREAT), supported by trailing twelve months EBITDA of $867 million.
The analyst at Mizuho commented on the results and outlook, noting that the performance was largely better than anticipated. The guidance for fiscal year 2025 is considered conservative by the firm, suggesting it may hold potential upside. The company’s quarter was described as clean, with a guidance that reassures stakeholders.
Travel + Leisure’s reported earnings and forward-looking statements seem to have inspired confidence in Mizuho, prompting the firm to raise their price target. The new target of $64 up from $55 reflects this optimism about the company’s financial trajectory, despite the decision to maintain a neutral rating on the stock.
Investors and market watchers will likely monitor Travel + Leisure’s performance in the coming quarters to see if the company can meet or exceed the conservative estimates and whether Mizuho’s revised price target anticipates a steady path ahead for the hospitality and leisure company. The stock currently trades at an attractive P/E ratio of 9.86, with analyst price targets ranging from $54 to $76. For deeper insights into TNL’s valuation and growth prospects, investors can access comprehensive analysis and 10+ additional ProTips through InvestingPro’s detailed research reports.
In other recent news, Travel + Leisure Co reported its fourth-quarter 2024 financial results, exceeding analyst expectations with an earnings per share (EPS) of $1.72, compared to the forecasted $1.62. The company also reported a revenue of $971 million, surpassing the projected $957.63 million. This strong performance was attributed to higher net revenue and a slightly improved margin, leading to a 5% increase in Q4 Adjusted EBITDA. Analysts from Citizens JMP raised the price target for Travel + Leisure to $60, maintaining a Market Outperform rating, while Goldman Sachs adjusted their target to $62, keeping a Neutral rating. Both firms acknowledged the company’s robust Vacation Ownership Interest (VOI) sales and improvements in cost management. Despite these positive financial results, concerns remain about elevated delinquencies, although some improvements have been noted. Travel + Leisure’s guidance for 2025 projects an Adjusted EBITDA between $955 million and $985 million, with Gross VOI Sales expected to reach $2.4 billion to $2.5 billion. The company plans to focus on expanding its owner base and enhancing product offerings, including the launch of Sports Illustrated sales.
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