BMO Capital analyst Ari Klein maintained a Hold rating on Hilton Worldwide Holdings (HLT – Research Report) today and set a price target of $230.00.
Ari Klein has given his Hold rating due to a combination of factors surrounding Hilton Worldwide Holdings’ recent performance and future outlook. The company reported mixed results for the first quarter, with some positive aspects such as an adjusted EPS that exceeded expectations, driven by lower taxes. However, the fee revenue fell short of predictions, and the profitability from owned and leased properties was below estimates, indicating some underlying challenges.
Moreover, Hilton’s guidance for 2025 reflects a recalibration in response to a weaker macroeconomic environment. The company lowered its system-wide RevPAR growth forecast and widened its EBITDA range, suggesting caution about future performance. While the outlook for the remainder of the year shows potential resilience, the anticipated acceleration in RevPAR growth might be overly optimistic if economic conditions deteriorate further. These mixed signals contribute to the Hold rating, as the potential for growth is balanced by uncertainties in the broader economic landscape.
In another report released on April 23, Evercore ISI also maintained a Hold rating on the stock with a $245.00 price target.