Hilton 'Doing What They Do Best,' Barclays Says

In a report published Thursday, Barclays analysts maintained an Overweight rating on

, while raising the price target from $33 to $34. Hilton reported robust quarterly results, driven by favorable lodging fundamentals and continued execution of its growth strategy. "Hilton faces many growth drivers over the next few years, including a 240,000 room development pipeline, new brands (Curio, Canopy, a new midscale brand), rising effective franchise fee rates, and asset-light timeshare development, all of which support our view of Hilton as our Top Pick in Lodging," the analysts mentioned. The company's adjusted EBITDA, at $599 million, was ahead of Barclays and consensus estimates. Hilton's worldwide systemwide RevPAR growth of 6.6 percent and adjusted EPS at $0.12 were also ahead of estimates. Hilton announced plans to use the proceeds from sale of Hilton Sydney to repay debt. The company also stated that it expects to have cash resources available for debt prepayments or dividend payments in 2015. The analysts expect Hilton to announce plans "regarding a potential dividend payment by 2Q15."