UPDATE: UBS Upgrades Hilton on Upcoming Catalysts and Positive Momentum

In a report published Monday, UBS analyst Robin Farley upgraded Hilton Worldwide Holdings Inc. HLT from Neutral to Buy and raised the price target from $23.00 to $26.00 on upcoming catalysts and positive momentum. 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 Holdings closed at $23.07 on Friday. The stock was up approximately 2 percent following the UBS note. Shares have since seen a rather aggressive sell-off from around 10:40 a.m. (EST), not following the corresponding movement in the hotel sector. Hilton is currently trading at $22.90, down 0.74 percent.