Hyatt Hotels (H) PT Lowered to $157 at Baird

Baird analyst Michael Bellisario lowered the price target on Hyatt Hotels (NYSE: H) to $157.00 (from $158.00) while maintaining a Neutral rating.

The analyst commented: "We remain on the sidelines given that we view estimates as too high. We updated our model in mid-August following the Hyatt Regency Orlando sale, but many others have not yet. Also, with several hurricanes hitting Mexico and the Caribbean during 3Q24 (and into 4Q24), ALG's performance is likely to be negatively impacted; as such, our updated model reflects reduced revenues and profit for Hyatt's Distribution segment. From a RevPAR performance perspective, domestic leisure trends remained sluggish in 3Q24; China was plus/minus in line with our expectations during August and September (-MSD%); and Europe was in line with to slightly below our expectations, but Hyatt's portfolio (including one owned hotel) likely experienced an outsized benefit from the Paris Olympics. From a strategic perspective, the company's asset-lighter transition has been completed (i.e., future asset sales will be opportunistic – the Andaz London Liverpool Street sale/redevelopment could occur in 2025), and Hyatt was aggressive on the buyback front in August-September when shares pulled back following 2Q24 earnings, and now the company has met its full-year shareholder capital returns target of $1.25 billion (i.e., share repurchases could moderate a bit over the near term)."

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