Baird Increases Price Target for Hyatt Hotels as Analysts Expect Positive Asset Sales Announcement
On Tuesday, financial services firm Baird adjusted its outlook on Hyatt Hotels Corporation, raising the stock’s price target to $134 from the previous $116. The firm has maintained a Neutral rating on the hospitality company’s shares. The adjustment comes amid high hopes for Hyatt’s progress in its asset sales.
Baird anticipates a positive announcement later this week regarding the company’s advancements in this area. The analyst highlighted improvements in both transaction and financing environments, suggesting that these factors, together with Hyatt’s move toward an asset-light business model, could lead to a resurgence in momentum for the company in 2024.
Hyatt’s strategy aligns with the broader trend seen in the hotel industry, where brand and Real Estate Investment Trust (REIT) valuations have experienced an upswing. The analyst expects that as Hyatt announces or completes asset dispositions, investor sentiment towards the company’s shares could see a favorable shift.
Baird believes that the combination of these dispositions and the improving transaction landscape could provide strategic advantages for Hyatt in the near term. The highly anticipated update on asset sales is seen as a potential catalyst for a change in investor outlook on Hyatt’s shares.
Analyst comment
Positive news. The market expects a positive asset sales announcement from Hyatt Hotels, potentially leading to a resurgence in momentum for the company in 2024. The analyst anticipates a favorable shift in investor sentiment towards Hyatt’s shares as it aligns with the industry trend of increasing brand and REIT valuations. The update on asset sales is seen as a potential catalyst for a change in investor outlook.
