Analyst Ari Klein of BMO Capital maintained a Hold rating on Park Hotels & Resorts, retaining the price target of $11.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Ari Klein has given his Hold rating due to a combination of factors impacting Park Hotels & Resorts. The company’s third-quarter performance fell short of expectations, with a notable year-over-year decline in RevPAR and EBITDA/FFO figures below consensus estimates. This underperformance was anticipated, but the outlook for the fourth quarter has been adjusted to reflect flat growth rather than the previously expected increase, influenced by challenges such as the government shutdown and regional weaknesses in Hawaii, Chicago, and Southern California.
Despite the softer RevPAR, the implied fourth-quarter EBITDA remains aligned with consensus, though there is potential downside risk if the government shutdown persists. The company’s adjusted FFO also missed consensus expectations, and while revenue was in line due to higher food and beverage sales, it was offset by lower room revenues. Additionally, the reduction in the 2025 RevPAR outlook further supports the Hold rating, as ongoing headwinds continue to impact the company’s financial performance.
Klein covers the Real Estate sector, focusing on stocks such as Crown Castle, Digital Realty, and Equinix. According to TipRanks, Klein has an average return of 3.7% and a 53.24% success rate on recommended stocks.
In another report released today, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $11.50 price target.