Hilton Stock Outlook: Is Wall Street Bullish or Bearish?

McLean, Virginia-based Hilton Worldwide Holdings Inc. (HLT) is a hospitality company that manages, franchises, owns, and leases hotels and resorts. Valued at a market cap of $63 billion, the company’s portfolio includes various leading brands spanning luxury, full-service, lifestyle, and extended-stay segments, such as Waldorf Astoria, Conrad, Hilton Hotels & Resorts, DoubleTree by Hilton, Embassy Suites, and Hampton by Hilton.

This hospitality company has outpaced the broader market over the past 52 weeks. Shares of HLT have soared 27.1% over this time frame, while the broader S&P 500 Index ($SPX) has gained 16.4%. However, the stock is up 8.3% on a YTD basis, underperforming the SPX’s 9.7% rise.

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Zooming in further, HLT has surged past the AdvisorShares Hotel ETF’s (BEDZ) 20.6% uptick over the past 52 weeks and marginal loss on a YTD basis.www.barchart.com

Shares of HLT plunged 2.6% on Jul. 23, after its Q2 earnings release. The company’s total revenue improved 6.3% year-over-year to $3.1 billion, with its franchise and licensing fees rising by 8.1%. Moreover, compared to the year-ago quarter, its adjusted EBITDA grew 9.9% to $1 billion, while its adjusted EPS of $2.20 advanced 15.2%, topping consensus estimates of $2.04. However, despite these positive results, investor sentiment may have been negatively affected by lower system-wide occupancy and a decline in revenue per available room.

For the current fiscal year, ending in December, analysts expect HLT’s EPS to grow 11.8% year over year to $7.96. The company’s earnings surprise history is promising. It topped the consensus estimates in each of the last four quarters.

Among the 23 analysts covering the stock, the consensus rating is a "Moderate Buy” which is based on eight “Strong Buy,” three "Moderate Buy,” and 12 “Hold” ratings.www.barchart.com

This configuration is slightly more bullish than two months ago, with seven analysts suggesting a “Strong Buy” rating.

On Jul. 30, Raymond James Financial, Inc. (RJF) maintained an “Outperform" rating on HLT and raised its price target to $300, implying a 12.1% potential upside from the current levels.

Story Continues

The mean price target of $278.65 represents a 4.1% premium from HLT’s current price levels, while the Street-high price target of $340 suggests an ambitious upside potential of 27%.

On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com

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