Hyatt initiated with Overweight, named top pick at Morgan Stanley

Morgan Stanley analyst Stephen Grambling initiated coverage of Hyatt with an Overweight rating and $136 price target. The analyst calls Hyatt his top pick in lodging. The company’s combination of selling owned assets, "rapid" growth in asset light fees, and capital return will drive an inflection in the stock’s valuation, Grambling tells investors in a research note. He believes Hyatt’s buyback and dividend "should help cushion downside while providing for substantial upside optionality."