On Tuesday, Baird, a financial services firm, adjusted its outlook on Hyatt Hotels Corporation (NYSE:H), increasing the stock's price target to $134 from the previous $116. The firm has maintained a Neutral rating on the shares of the hospitality company.
The adjustment comes amid expectations of Hyatt making headway in its asset sales. Baird anticipates a positive announcement later in the week regarding the company's progress in this area. The analyst noted improvements in both transaction and financing environments, suggesting that these factors, along with the asset-lighter business model Hyatt is adopting, could lead to a resurgence in momentum for the company in 2024.
Hyatt's strategy is in line with a broader trend in the hotel industry, where brand and Real Estate Investment Trust (REIT) valuations have seen a recent uptick. The analyst expects that as Hyatt announces or completes asset dispositions, investor sentiment toward the company's shares might see a favorable shift.
The firm's perspective is that the combination of these dispositions and the improving transaction backdrop could provide tactical advantages for Hyatt in the near term. The anticipated update on asset sales is seen as a potential catalyst for a change in investor outlook on Hyatt's shares.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.