Goldman Sachs analyst Lizzie Dove upgraded Travel + Leisure (NYSE: TNL) from Neutral to Buy with a price target of $85.00.

The analyst comments "TNL (Buy). We believe the underperformance post 1Q was overdone, with the company losing ~$700mn market cap (i.e. nearly $100mn of capitalized EBITDA) based on a 20bps increase in LLPs, some new owner concerns and a lack of guidance increase, while TNL is arguably the cleanest capital-light recurring fee story in the sector today. Unlike VAC and HGV, which have each had varying degrees of integration and/or operational turnaround work to contend with for the past few years, TNL has avoided some of the mistakes of its peers and instead stuck to its bread and butter and focused on execution of its core business. In addition, we believe TNL's 2026 guidance is too conservative and, even without a raise, TNL is still delivering a compelling long-term algo of ~MSD EBITDA growth and EPS growth in the teens, which isn't achievable elsewhere in our coverage at this valuation. We upgrade TNL from Neutral to Buy and see 25% upside to our revised $85, 12-month price target."

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Shares of Travel + Leisure closed at $68.00 yesterday.