UPDATE: MKM Partners Upgrades Interval Leisure Group (IILG) to Buy

MKM Partners upgraded Interval Leisure Group (NASDAQ: IILG) from Neutral to Buy with a price target of $25.00 (from $16.50). Analyst Christopher Agnew thinks the company is poised to accelerate earnings and FCF growth, and he noted that its strong balance sheet provides good visibility into unlocking value,

Agnew summarized his view, saying "Following the completion of its transformative merger with Vistana, we believe the company is poised for an acceleration in earnings growth and FCF. (2) IILG’s strong balance sheet provides good visibility into unlocking value over a multi-year period; inventory on the balance sheet includes $6.7bn of embedded sales value and leverage declined to 1.5x. (3) Improving industry and company metrics in 2H as well as corporate actions by peers should serve as positive catalysts in 2H. (4) IILG’s focus on leisure travel and 2.8% dividend yield also attract us."

For an analyst ratings summary and ratings history on Interval Leisure Group click here. For more ratings news on Interval Leisure Group click here.

Shares of Interval Leisure Group closed at $17.12 yesterday.

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