As previously reported, BofA analyst Shaun Kelley double downgraded Playa Hotels & Resorts to Underperform from Buy with a price target of $8, down from $10. With leisure demand trends slowing and the Caribbean having been one of the largest COVID beneficiaries, the firm now sees risks from softening demand trends, potential over-earning and shift to other tourism markets and higher operating leverage than asset light peers across lodging and travel, the analyst tells investors. Playa’s operating risks include price normalization, cyclical consumer pull backs or trade-down, supply growth, and seasonality entering hurricane season, BofA says.
Published first on TheFly
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