Travel + Leisure Co. (TNL) Receives Market Outperform Rating from JMP Securities
Leading provider of vacation ownership products and services, Travel + Leisure Co. (NYSE: TNL), has received a new stock rating from JMP Securities. The firm initiated coverage with a Market Outperform rating and set a price target of $50.00 per share. This represents an 18.5% potential upside from the stock’s last closing price of $42.17, with the additional benefit of a 4.5% dividend yield, potentially leading to a total return of 23.0%.
JMP Securities’ price target is based on a valuation multiple of 7.1 times the company’s estimated 2025 EBITDA, or 7.4 times the projected 2025 earnings per share. Notably, this target multiple is lower than the five-year average multiples for both Travel + Leisure and the broader Timeshare industry.
The optimism from JMP Securities underscores Travel + Leisure’s stock performance and potential for growth. The firm’s assessment suggests that Travel + Leisure’s shares are poised for an increase based on the current trading price and the company’s financial projections.
The 4.5% dividend yield offered by Travel + Leisure provides an additional incentive for potential investors. This yield adds to the total return profile of the stock beyond the anticipated capital appreciation forecasted by JMP Securities.
With a market capitalization of $3.05 billion, Travel + Leisure Co. is trading with a price-to-earnings (P/E) ratio of 9.01 when considering the last twelve months as of Q3 2023. The stock is trading near its 52-week high, reflecting investor confidence and a strong market performance.
Travel + Leisure’s commitment to delivering value to its investors is evident through its 17 consecutive years of maintained dividend payments, currently yielding 4.27%. Additionally, the company has shown a dividend growth of 12.5% over the last year.
Furthermore, Travel + Leisure boasts a robust liquidity position, with liquid assets surpassing short-term obligations. This provides the company with financial flexibility and stability.
As Travel + Leisure Co. (NYSE:TNL) gains attention with its new stock rating from JMP Securities, the company’s solid financial health and strong market position offer promise for both current and potential investors.
Analyst comment
Positive news.
As an analyst, I expect that Travel + Leisure Co.’s market will experience growth in the near future. The Market Outperform rating and price target of $50.00 per share indicate an 18.5% potential upside. The additional 4.5% dividend yield could contribute to a total return of 23.0%. Travel + Leisure’s stock performance, financial projections, and commitment to value delivery make it an attractive investment option.
