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Hilton Worldwide (HLT) - Get Hilton Worldwide Holdings Inc Report stock was downgraded to a "sell" from a "hold" at Hamburg, Germany-based Berenberg, a day after the hotel operator split itself into three separate, publicly traded companies.

Berenberg analysts do "see a number of positive features in Hilton," such as strong structural growth and potential shareholder returns of $3.8 billion over the next three years.

However, when the analysts weighed the positives against its projection that Hilton will generate 2017 full-year earnings of $1.87 a share, equating to a 31 times price to earnings ratio, they said the "shares look stretched."

"Our valuation concerns about the multiples at Hilton are compounded by a discounted cash flow of $47 per share," Berenberg said in a research note Thursday morning.

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Meanwhile, Hilton is pushing for global expansion by working on increasing its presence in 91 countries, including Canada, the United Arab Emirates, Russia and China.

"Hilton continues to expand outside the U.S. at pace and 50% of the pipeline is international," Berenberg analysts said. "However, the U.S. remains instrumental to its overall financial performance."

On Tuesday, Hilton spun off subsidiaries Hilton Grand Vacations (HGV) - Get Hilton Grand Vacations, Inc. Report and Park Hotels & Resorts (PK) - Get Park Hotels & Resorts, Inc. Report . The three companies - the hotel operator, its timeshare business and its portfolio of hotels and resorts - began trading separately on the New York Stock Exchange yesterday.

Shares of Hilton and Hilton Grand Vacations were lower by under $1 while Park Hotels stock dropped $1.33, or 4.45%, to $28.57 this afternoon.