UPDATE: Hyatt Hotels (H) PT Raised to $111 at Wells Fargo on Apple Leisure Addition

Wells Fargo analyst Dori Kesten raised the price target on Hyatt Hotels (NYSE: H) to $111.00 (from $100.00) while maintaining a Overweight rating after updating the model for the Apple Leisure Components. The new PT is based on 16.5x 2023E economic EBITDA.

The analyst stated "Certainly the accounting for Apple Leisure Group took up the majority of Q4 earnings, however, we believe the re-acceleration in lodging demand in February outside of Apple and the momentum behind Apple with 2021 results 50% above initial underwriting should not be lost in the busy quarter. We expect business transient and group demand to continue to recover in 2022, notably driving higher end hotels for which Hyatt has the largest exposure, with leisure remaining at elevated levels, and believe its newly acquired Apple Leisure is pacing well to surprise to the upside over the next few years. We are lowering our 2022E EPS to -$0.98, from $0.63, and our 2023E to $0.72, from $2.16, with EBITDA essentially unchanged at $723MM and $956MM, respectively."

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