Market Overview

Analyst Downgrades Hyatt Hotels Amid Slowing Global Economy

Analyst Downgrades Hyatt Hotels Amid Slowing Global Economy

A more challenging economic backdrop could hurt the prospects of Hyatt Hotels Corporation (NYSE: H) and result in a significant slowdown in the company’s asset sales in 2019, according to Raymond James.

The Analyst

Raymond James’ William Crow downgraded Hyatt Hotels from Outperform to Market Perform, removing his $80 price target.

The Thesis

Although Hyatt’s stock valuation remains attractive and even “borders on compelling,” the same is true for both Hilton Hotels Corporation (NYSE: HLT) and Marriott International Inc (NASDAQ: MAR), Crow said.

Hyatt’s shares have historically traded at a modest discount to Hilton’s and Marriott’s shares, Crow said in the note. Both Hilton and Marriott are asset light and have been returning capital to shareholders.

Hyatt’s transition hasn't been smooth. Although the company made significant progress in 2018, there’s a “high likelihood” of a significant decline in its asset sales in 2019, Crow added.

Benefit to shareholders from Hyatt’s ongoing investments in wellness and “experiential” businesses is still unclear. Despite the marked improvement in Hyatt’s shareholder relations over the years, the company remains well behind Marriott and Hilton. Moreover, the lack of detailed guidance has “historically led to volatility around quarterly earnings,” the analyst wrote in the report.

Price Action

Shares of Hyatt Hotels traded around $68.50 Tuesday afternoon.

Related Links:

Benzinga's Top Upgrades, Downgrades For January 8, 2019

Analyst: Alternative Accommodation Leaders Will Surpass Top Hotel Chains Volume By 2021

Photo courtesy of Hyatt Hotels.

Latest Ratings for H

Apr 2019DowngradesOutperformMarket Perform
Apr 2019DowngradesOutperformMarket Perform
Feb 2019MaintainsHoldHold

View More Analyst Ratings for H
View the Latest Analyst Ratings

Posted-In: Raymond James William A. CrowAnalyst Color Downgrades Travel Analyst Ratings General Best of Benzinga


Related Articles (H + HLT)

View Comments and Join the Discussion!

Latest Ratings

View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

4 Tech Stocks That Are Showing Signs Of Life Right Now

Boeing Sets Annual Delivery Record, Has Backlog Of Nearly 900 Orders