Nomura Securities Maintains a 'Neutral' on Hyatt Hotels (H); Renovation Disruptions Drag Results

Nomura Securities maintains a 'Neutral' on Hyatt Hotels (NYSE: H).

Nomura analyst, Harry Curtis, says, "In the note we take a look at renovation disruptions at H, which drag on results through 4Q11 with upside being limited until them. We believe this makes H a 2012/13 stock. We’ve adjusted our quarterly RevPAR forecast to reflect the timing and extent of renovations. We’re tempering our 2Q and 3Q outlooks and increasing the 4Q, which should benefit from the completion of several renovation projects. 2011 RevPAR and FCF should be restrained as a result, but 2012 RevPAR should benefit from the upgraded system. 2011/12 EPS estimates shift to $0.50/$1.08 from $0.52/$1.15, respectively. We view the valuation as fair at 10.6x our 2012 EBITDA forecast, in line with its peer group at 10.9x."

For more ratings news on Hyatt Hotels click here and for the rating history of Hyatt Hotels click here.

Shares of Hyatt Hotels closed at $42.58 yesterday.

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