J.P. Morgan Raises H Target To $54 From $51

J.P. Morgan has raised its PT on Hyatt Hotels H to $54 from $51. “Our year-end 2011 price target is $54 (up from $51), which we derive by using a blended net asset value/sum-of-the-parts approach,” J.P. Morgan writes. “We value H's owned hotels at ~$227,000 per key (up from our prior ~$205,000 per key), its managed and franchised fee-related business at 13x our 2012E estimates, its timeshare business at 4.0x our 2012E estimates, and unallocated expenses at 13.6x, less net debt (including H's share of JV debt). “We believe this valuation is consistent with H's lodging REIT peers (with regard to owned hotel per key valuation) and MAR and HOT (with regard to fees and timeshare valuation). At current levels, H trades at 15.3x 2011E EV/EBITDA and 11.8x 2012E EV/EBITDA. Our $54 price target implies that H can trade at 13.6x our 2012E EV/EBITDA.” Hyatt Hotels currently trades at $47.36.