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On Wednesday, Truist Securities updated its financial estimates and price target for Wyndham Hotels & Resorts (NYSE:WH). Following the company’s fourth-quarter 2024 earnings report, analysts at Truist Securities adjusted their 2025 EBITDA projection for Wyndham Hotels slightly downward from $751 million to $748 million. Concurrently, the earnings per share (EPS) estimate was revised from $4.88 to $4.74.
Despite the minor adjustments in the earnings forecast, Truist Securities increased the price target for Wyndham Hotels stock from $105.00 to $122.00. The firm has maintained a Buy rating on the stock, indicating a positive outlook on the company’s performance. This optimism comes as the stock has shown impressive momentum, with InvestingPro reporting a substantial 48.14% return over the past six months, though current valuations suggest the stock may be trading above its Fair Value.
The new price target set by Truist Securities is based on a steady EBITDA multiple of 15.0 times, which is applied to the firm’s 2026 EBITDA estimate. Previously, the price target was anchored to the 2025 EBITDA estimate, but the analysts have now shifted their valuation basis to the following year.
The adjustment in the price target reflects Truist Securities’ updated expectations and their continued confidence in the hotel company’s growth potential. Wyndham Hotels & Resorts has not issued any public comment regarding the revised price target and maintained Buy rating by Truist Securities as of Wednesday.
In other recent news, Wyndham has been making headlines following an upgrade by Wells Fargo (NYSE:WFC) Securities from equal-weight to overweight. This upgrade is based on a combination of reasonable valuation, low expectations, and improving fundamentals. Recent developments have shown a positive change in revenue per available room (RevPAR) at the economy and mid-scale level, an area that covers about 70% of Wyndham’s operations. This change marks a turnaround from a challenging period of declining RevPAR.
Furthermore, Wells Fargo’s analysis revealed that when RevPAR begins to positively inflect, asset-light C-corp stocks like Wyndham tend to outperform. This is supported by historical data spanning roughly 25 years. The firm also expressed confidence in Wyndham’s 2026 Street estimates, suggesting they might be too conservative. They propose that Wyndham could potentially reach $830 million in FY26 EBITDA, which is the midpoint of the company’s guidance range.
This projection, along with an improved RevPAR outlook, led Wells Fargo to increase their price target for Wyndham. These developments reflect Wells Fargo’s belief in Wyndham’s growth prospects, backed by improving industry metrics and a favorable economic environment that could lead to better-than-expected financial performance.
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