Will This Price Target Increase Help Hilton Worldwide (HLT) Stock Today?

Story updated at 10:05 a.m. to reflect market activity.

NEW YORK (TheStreet) -- Nomura raised its price target for Hilton Worldwide (HLT) to $29 from $26 a share Monday.

Shares of Hilton were falling -0.9% to $24.58 in morning trading.

He analyst firm also increased its EPS estimates for the hotel operator, reiterating its "buy" rating. Analysts Harry C. Curtis, Brian H. Dobson, and Kelvin Wang believe the company can expand its margins.

"HLT should increase EBITDA at a 13% CAGR through 2016E," the analysts wrote. "Over that period HLT's leverage should decline to 3.2x in 2016 from 5.3x in 2013. Factors that should lift HLT's growth rate higher than most in its peer group are: 1) high operating leverage to stronger than expected global RevPAR growth given HLT's 8 "big box" urban convention hotels, 41 majority owned or controlled hotels, 31 JV hotels, and 75 leased locations, 2) the out-sized EBITDA margin expansion that these hotels should have, and 3) its pipeline of ~200k rooms supports 6% annual growth."

Must read: Warren Buffett's 25 Favorite Stocks

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

HLT Chart

HLT data by YCharts

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

More from Markets

Sohn Conference Briefly Distracts From Barrage of Earnings -- ICYMI

Sohn Conference Briefly Distracts From Barrage of Earnings -- ICYMI

Dow and Nasdaq Finish Lower as 10-Year Treasury Yield Hovers Near 3%

Dow and Nasdaq Finish Lower as 10-Year Treasury Yield Hovers Near 3%

Video: Stop Using Student Loan Money to Buy Bitcoin

Video: Stop Using Student Loan Money to Buy Bitcoin

Let the Najarian Brothers Crash-Proof Portfolio

Let the Najarian Brothers Crash-Proof Portfolio

Facebook Sends Facial Recognition Notification in Error

Facebook Sends Facial Recognition Notification in Error