UPDATE: BMO Capital Markets Initiates Hyatt Hotels at Outperform on Growth BMO Capital Markets

BMO Capital Markets initiated coverage on Hyatt Hotels Corporation

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.