Stifel lowers Wyndham Hotels stock price target to $95.50 from $103.50

Investing.com - Stifel has reduced its price target on Wyndham Hotels (NYSE:WH) to $95.50 from $103.50 while maintaining a Buy rating on the stock. The stock, currently trading at $74.88, sits near its 52-week low of $75.28, with analyst targets ranging from $93 to $120. According to InvestingPro analysis, the stock appears undervalued at current levels.

The adjustment follows Wyndham’s third-quarter earnings report, which showed adjusted earnings per share of $1.46, exceeding Stifel’s estimate by $0.03 and beating the Street consensus by $0.02.

The hotel company reported adjusted EBITDA of $213 million for the quarter, surpassing Street expectations of approximately $210.9 million.

Stifel noted that the performance variance was primarily due to higher marketing revenue and reduced spending compared to their estimates.

Despite the price target reduction, Stifel’s maintained Buy rating suggests continued confidence in Wyndham Hotels’ overall business outlook.

In other recent news, Wyndham Hotels & Resorts reported its third-quarter financial results, revealing a mixed performance. The company posted adjusted earnings per share of $1.46, slightly surpassing analyst estimates of $1.44. However, Wyndham’s revenue came in at $382 million, falling short of the expected $403.64 million. This shortfall was attributed to a decline in global revenue per available room (RevPAR), which decreased by 5% year-over-year. The decline was particularly pronounced in the U.S., where RevPAR fell due to lower occupancy and room rates. Additionally, Wyndham significantly reduced its full-year financial outlook, citing weakening travel demand as a key factor. These developments have prompted investors and analysts to reassess the company’s prospects in the current travel environment.

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