Travel + Leisure price target raised to $70 from $60 at JMP Securities

Published 24/07/2025, 10:42
Travel + Leisure price target raised to $70 from $60 at JMP Securities

Investing.com - JMP Securities has raised its price target on Travel + Leisure (NYSE:TNL) to $70.00 from $60.00 while maintaining a Market Outperform rating on the stock. The company, currently trading near its 52-week high of $62.27, has shown remarkable momentum with a 45% return over the past year. According to InvestingPro data, the stock’s RSI suggests it’s in overbought territory.

The price target increase follows Travel + Leisure’s second quarter 2025 financial results, which showed EBITDA of $250 million, in line with analyst expectations and consensus. Despite a slight revenue miss, the company offset this with SG&A efficiency.

JMP Securities noted that year-to-date, Travel + Leisure has seen outperformance in its Vacation Ownership segment, which has been counterbalanced by results in the Travel/Membership division. The company has maintained its full-year 2025 guidance for adjusted EBITDA.

The research firm highlighted that Travel + Leisure’s customer base has remained resilient, showing no negative effects from tariffs that caused uncertainty earlier in the year. JMP Securities views the company as well-positioned for future growth due to its brand portfolio that includes Wyndham, Margaritaville, and Accor (EPA:ACCP).

The new $70 price target represents a potential 13.1% upside in capital appreciation, with an additional 3.6% forward yield, implying a possible total return of 16.7% for investors. Trading at a P/E ratio of 10x and showing strong financial health according to InvestingPro’s comprehensive analysis, TNL offers an interesting proposition for value-focused investors despite currently trading above its Fair Value.

In other recent news, Travel + Leisure Co. reported its second-quarter earnings for 2025, revealing a mixed performance. The company’s earnings per share (EPS) came in at $1.65, slightly below the forecasted $1.66. However, revenue exceeded expectations, reaching $1.02 billion compared to the anticipated $1.01 billion. Mizuho (NYSE:MFG) has upgraded Travel + Leisure’s stock from Neutral to Outperform, citing an anticipated earnings inflection in the latter half of the year. This upgrade is supported by five key drivers identified by Mizuho, including easier tour comparisons. Additionally, Stifel raised its price target for Travel + Leisure to $70 from $66, maintaining a Buy rating. Stifel highlighted the company’s focus on increasing the new owner segment of its business to 35%, emphasizing strong fundamentals over specific targets. These developments reflect strategic efforts by Travel + Leisure to enhance its market position.

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