Morgan Stanley initiates Ryman Hospitality stock with Equalweight rating

Investing.com - Morgan Stanley initiated coverage on Ryman Hospitality Properties (NYSE:RHP) with an Equalweight rating and a $92.00 price target on Wednesday. According to InvestingPro data, RHP currently trades at $89.21 with a market capitalization of $5.6 billion, and maintains a "GREAT" overall financial health score.

The investment bank views Ryman as "best in-class among the hotel REITs" due to its distinctive entertainment group and differentiated convention hotel portfolio with a strong investment track record.

Morgan Stanley notes that these factors have driven consistent outperformance compared to peers, but believes the stock’s valuation already reflects a premium to the group.

The firm sees approximately 4% upside to its 12-month price target, which is based on about 11 times forward 24-month EBITDA, in line with historical next-twelve-months EV/EBITDA multiples.

Morgan Stanley calculates a total return potential of 9%, including a 5% dividend yield, but indicates better risk-reward opportunities exist elsewhere in its coverage, specifically mentioning Hyatt as offering similar end-market exposure with capital-light growth.

In other recent news, Ryman Hospitality Properties reported its second-quarter 2025 earnings, showcasing a mixed financial performance. The company achieved a revenue of $659.5 million, exceeding the projected $617.2 million by 6.85%. However, its earnings per share (EPS) fell short, recording $1.12 against an expected $1.29, resulting in a -13.18% surprise. Additionally, Ryman Hospitality Properties declared a quarterly cash dividend of $1.15 per share, scheduled for payout on October 15, 2025, to shareholders of record as of September 30, 2025. Cantor Fitzgerald initiated coverage on the company with an Overweight rating, setting a price target of $108.00, indicating a 16.5% upside potential. The firm highlighted Ryman’s group-oriented customer base as a factor providing cash flow transparency in uncertain economic times. These developments reflect the latest updates concerning Ryman Hospitality Properties.

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