Jefferies Upgrades Ratings on Hilton and Marriott
Skift Take
Jefferies upgrades Hilton and Marriott to Buy, citing business model strength and shift to durable growth drivers amid uncertainty.
The DJIA surged 1,161 points, the Nasdaq was up 779, the S&P 500 was up 184 points, and the 10-year treasury yield was up .08 to 4.46%. Have you ever seen a more emotional financial market? Lodging stocks rose nicely today. The biggest gainers were the REITs, with SVC up 11%, PEB up 9%, INN and PK both up 8%, and BHR up 7%. There were a whole bunch more up 5% to 6% today, while non-REIT VAC was up 8%.
Jefferies upgraded their ratings on Hilton and Marriott to Buy from Hold, saying they believe the business model strength is positioned to grow through the currently uncertain business climate, and the peak multiples are appropriate. Jefferies said the ongoing shift from cyclical RevPAR to durable MSD NUG as the core earnings growth driver bears greater visibility with long-term fee, EBITDA, and FCF growth. MAR was up 5%, and HLT rose 4% on the day.
Truist said that what stood out the most to them from this earnings season fo
