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UPDATE: UBS Upgrades Hilton On Upcoming Catalysts And Positive Momentum

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In a report published Monday, UBS analyst Robin Farley upgraded Hilton Worldwide (NYSE: HLT) from Neutral to Buy and raised the price target from $23.00 to $26.00.

Farley noted that Hilton is planning on launching two new brands this year. The analyst wrote, “in the summer, a brand to encompass iconic urban and resort hotels that don't fit into other brands, which sounds similar to MAR's Autograph collection, and in the fall, an 'accessible lifestyle' brand.”

UBS expects the company to “better utilize” the company's New York City Waldorf Astoria property. The analyst added that the company could construct similar deals to the Hawaii parking lot-to-timeshare deal. Farley continued, “In the meantime, group business grew faster than transient in Q1 for the first time, so the momentum has positive read-through for group next year as well.”

The analyst raised EBITDA estimates from $2.411 billion to $2.468 billion. UBS also raised 2014 EPS estimates from $0.58 to $0.68.

Shares of Hilton Worldwide closed at $23.07 on Friday. The stock was up approximately two percent following the UBS note.

Shares have since seen a rather aggressive sell-off from around 10:40 a.m. EST, which does not follow the corresponding movement in the hotel sector. Hilton is currently trading at $22.99, down 0.35 percent.

Latest Ratings for HLT

DateFirmActionFromTo
Aug 2014CitigroupMaintainsBuy
Aug 2014BarclaysMaintainsOverweight
Aug 2014SunTrust Robinson HumphreyMaintainsNeutral

View More Analyst Ratings for HLT
View the Latest Analyst Ratings

Posted-In: Robin Farley UBSAnalyst Color Upgrades Price Target Analyst Ratings

 

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