Aug. 13 at 12:12 AM
Deutsche Bank upgraded Hilton Worldwide to Buy from Hold and raised its price target to
$365 from
$363, implying roughly 16% upside from current levels. The move comes after Hilton shares fell about 7% over the past month, even as forward adjusted EBITDA estimates remained stable or increased by roughly 50 bps, creating what the bank sees as a more attractive entry point.
Analyst Steven Pizzella said resilient RevPAR trends, solid underlying hotel demand and a more reasonable valuation should support Hilton over the next 6–12 months. Despite broader concerns about the economy, hotel industry RevPAR trends remain healthy, indicating that demand is holding up and giving Hilton room to sustain its operational momentum.
Deutsche Bank also believes the recent share-price decline has significantly reset investor expectations. Since earnings estimates have held up rather than deteriorated alongside the stock.
$HLT $DB