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Investing.com - Morgan Stanley upgraded Hyatt Hotels (NYSE:H) from Equalweight to Overweight on Wednesday, raising its price target to $168.00 from $147.00. The stock, currently trading at $149.39, has shown remarkable momentum with a 36% gain over the past six months according to InvestingPro data.
The upgrade comes as Hyatt announced the sale of Playa real estate and continues its commitment to selling owned and leased hotel assets, positioning the company for potential growth beyond current market expectations. While InvestingPro analysis indicates the stock is trading above its Fair Value, analysts maintain positive outlook with price targets ranging from $140 to $198.
Morgan Stanley noted that Hyatt’s upcoming renegotiation of its co-brand credit card agreement, combined with higher exposure to healthier higher-end demand segments, could drive material upside to consensus expectations and help re-rate the shares, which have lagged asset-light lodging peers over the past 18 months.
The firm values Hyatt on a sum-of-the-parts basis that equates to approximately 12.2x consolidated 2027 estimated EBITDA of about $1.4 billion, compared to the historical 3-year average of 11.0x next-twelve-months EV/EBITDA pre-pandemic.
Hyatt currently trades at approximately 14x 2027 estimated EV/EBITDA, positioned between the hotel REIT average of 10x and the higher-end Marriott/Hilton average of about 17x, even as 2027 estimated EBITDA is expected to be approximately 10% owned & leased and 90% asset-light.
In other recent news, Hyatt Hotels Corporation reported its second-quarter 2025 earnings, surpassing Wall Street expectations with an earnings per share of $0.68, compared to the forecasted $0.65. The company’s revenue also exceeded projections, reaching $1.75 billion against the anticipated $1.74 billion. Additionally, Bernstein raised its price target for Hyatt Hotels to $177 from $167, maintaining an Outperform rating, reflecting a positive cash return outlook. Meanwhile, Hydro One Limited announced the temporary leave of its President and CEO, David Lebeter, who will take compassionate care leave. Harry Taylor has been appointed as the Interim President and CEO during this period. Hydro One also declared a quarterly cash dividend of $0.3331 per common share, payable on September 29, 2025, to shareholders of record by September 10, 2025. These developments highlight the recent strategic and financial activities within these companies.
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