Hilton Worldwide (HLT) Stock Slumping Today Despite Credit Suisse Price Target Increase

Shares of Hilton Worldwide (HLT) are down despite Credit Suisse's price target rasie to $33 from $32, while maintaining an 'outperform' rating.
By Krysta Michaelides ,

NEW YORK (TheStreet) --Shares of Hilton Worldwide Holdings (HLT) - Get Report are down 0.53% to $28.16 in morning trading Friday despite Credit Suisse's price target increase to $33 from $32, while reiterating an "outperform" rating. 

"Hilton continues to hit on all-cylinders as it grows its M&F business, develops new brands, deleverages the balance sheet and unlocks value," analysts said after they met with management including CFO Kevin Jacobs. 

Monetization of timeshare and owned real estate represent ways to create additional value for Hilton, analysts said, adding that management didn't seem resulted to sell/spin some of its owned hotels and continues to see time share as an increasingly capital light, cash generating business. 

Credit Suisse said that Hilton has a number of near to intermediate term levers to create value, including deleveraging, capital return, spinning timeshare, eventual index inclusion (once BX drops below 50%) and continued growth of its M&F business. 

Separately, TheStreet Ratings team rates HILTON WORLDWIDE HOLDINGS as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:

"We rate HILTON WORLDWIDE HOLDINGS (HLT) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, weak operating cash flow and poor profit margins."

You can view the full analysis from the report here: HLT Ratings Report

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