NEW YORK (TheStreet) -- Shares of Hilton Worldwide (HLT) - Get Report were falling in early afternoon trading on Monday despite Morgan Stanley raising its price target on the stock to $26 from $25 in an analyst note this morning.
Morgan Stanley also maintained an "overweight" rating on the hotel operator's stock.
The firm said that it prefers C corporations in the lodging and hospitality sector that have strong unit growth like McLean, VA-based Hilton and competitor Marriot (MAR).
Unit growth translates into growth in earnings before interest, taxes, depreciation and amortization (EBITDA) despite the firm's lower revenue per available room (RevPAR) estimates for the sector in general.
For the U.S. hospitality sector, Morgan Stanley lowered its forecast for 2017 RevPAR growth this morning to 1% from 2.4%. In 2018, the firm expects RevPAR to fall 1% vs. its prior view of a 1.5% increase.
Hilton operates hotel brands including the Waldorf Astoria, Conrad Hotels, Hilton Grand Vacations, Hilton Garden Inn and the DoubleTree.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "buy" with a ratings score of B.
The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, reasonable valuation levels, notable return on equity and impressive record of earnings per share growth. We feel its strengths outweigh the fact that the company shows low profit margins.
You can view the full analysis from the report here: HLT