Travel + Leisure (TNL) Investor Meetings Highlight a Return to 2019 FCF Levels - Jefferies

Jefferies analyst David Katz reiterated a Buy rating and $78.00 price target on Travel + Leisure (NYSE: TNL) after hosting a series of investor meetings increasing confidence that Wyndham Destinations core timeshare business should drive EBITDA and FCF to at least the 2019 run-rate next year.

The analyst stated "Mgt. suggests that VPG could remain above 2019, even if sales mix returns to 40% new owners, which is more bullish than our expectation prior. Today's higher VPG levels are due, in equal measure, to existing owner sales, higher quality tours and retaining the most productive sales people. Mgt. notes its interest in keeping FICO levels at recent higher levels. The importance of VPG lies in the 50%-60% EBITDA flow through on incremental levels and therefore, elevated VPG could drive a return to 2019 EBITDA before hitting 2019's revenues via stronger margins."

For an analyst ratings summary and ratings history on Travel + Leisure click here. For more ratings news on Travel + Leisure click here.

Shares of Travel + Leisure closed at $65.03 yesterday.

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