UPDATE: Hilton Upgraded by Goldman Sachs

In a report released Tuesday, Goldman Sachs analyst Steven Kent boosted ratings on

from Neutral to Buy, upping price target from $23 to $26. Kent highlighted the key reasons for the optimistic view including capital allocated toward paying off debt, under appreciated timeshare strategy, and HLT lagging comparative to the sector. The report states, "Our expectations [is] that portfolio managers will increasingly appreciate Hilton's straightforward capital allocation plan relative to other lodging stocks. In addition, the upside of asset sales, operating leverage of owned hotels exposed to an improving US economy, and a compelling timeshare strategy all combine to make HLT our favorite hotel stock within our coverage" HLT closed previously at $22.49 and opened Tuesday morning at $22.91.