UPDATE: BMO Capital Markets Initiates Hyatt Hotels at Outperform on Growth BMO Capital Markets
BMO Capital Markets initiated coverage on Hyatt Hotels Corporation (NYSE: H) with an Outperform rating and a $45.00 price target.
BMO Capital Markets commented, "We believe that Hyatt has strong growth potential with a hotel pipeline equal to 29% of its existing rooms – proportionately the largest in the peer group. Negatives include margin and earnings volatility related to leased and owned hotels that generate 50% of the company's EBITDA. We think the combination of that volatility and limited earnings guidance erodes confidence in consensus estimates, and through that valuation. … For those willing to look beyond these issues, however, we believe Hyatt offers a very attractive GARP story where investors can benefit from stronger North American performance now while getting a piece of expanding lodging demand in international markets."
Hyatt Hotels closed at $39.38 on Monday.
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