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On Tuesday, Truist Securities updated its financial outlook for Hyatt Hotels Corporation (NYSE:H), increasing the price target to $163 from the previous $158 while maintaining a Buy rating on the stock. The adjustment follows Hyatt’s fourth-quarter earnings report for the year 2024. Currently trading at $144.96, Hyatt has seen a 10.15% decline over the past week, though it maintains a solid "GOOD" Financial Health score according to InvestingPro analysis.
Analysts at Truist, led by C. Patrick Scholes, revised their projections for the company’s future performance. They have updated their 2025 Adjusted EBITDA estimate to $1,142 million, a decrease from the prior forecast of $1,233 million. Additionally, the earnings per share (EPS) estimate for 2025 has been lowered to $2.47 from the previous $3.74. This aligns with InvestingPro data showing four analysts revising earnings downward for the upcoming period. For comprehensive analysis of Hyatt’s financial outlook, investors can access the detailed Pro Research Report, available exclusively to InvestingPro subscribers.
Looking ahead, Truist has introduced their 2026 Adjusted EBITDA and EPS projections for Hyatt. They anticipate the Adjusted EBITDA to reach $1,216 million and EPS to climb to $4.99.
The revised price target of $163 is based on a 15.9x target enterprise value to earnings before interest, taxes, depreciation, and amortization (EV/EBITDA) multiple. This multiple represents a blended average of the industry multiples for each of Hyatt’s business segments. Truist’s sum-of-the-parts analysis includes a 12.5x multiple for owned EBITDA, a 17x multiple for fees EBITDA, and a 10-12x multiple for other segments and ALG, all unchanged (u/c) from their previous assumptions. Current InvestingPro data shows Hyatt trading at an EV/EBITDA of 21.38x, with the company’s last twelve months EBITDA at $749 million.
The new price target reflects Truist’s confidence in Hyatt’s future financial performance, particularly looking towards the year 2026. The analysis factors in the company’s diversified business segments and their respective contributions to the overall valuation.
In other recent news, Hyatt Hotels Corporation experienced a significant shift as its Q4 earnings fell short of analyst expectations, reporting adjusted earnings per share of $0.42 and revenue of $1.72 billion. The company also announced an agreement to acquire Playa Hotels & Resorts for approximately $2.6 billion. In response to these developments, Bernstein SocGen Group, Jefferies, and Barclays (LON:BARC) have all adjusted their outlooks on Hyatt. Bernstein lowered its price target to $173, maintaining an Outperform rating, while Jefferies cut the price target to $161 with a Hold rating, and Barclays reduced its target to $151, keeping an Equalweight rating. These adjustments were influenced by Hyatt’s lower fourth-quarter EBITDA, full-year guidance falling below consensus, and an active period of asset sales and acquisitions. Despite these challenges, analysts remain cautiously optimistic about Hyatt’s potential growth and strategic decisions.
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