NEW YORK (TheStreet) -- Shares of Wyndham Worldwide (WYN) are up 0.49% to $88.48 in morning trading after JMP Securities raised their price target to $102 from $88, and reiterated their "market outperform" rating.
"We feel there should be sufficient Free-Cash-Flow to explore accretive acquisitions, such as the recent Dolce deal, while still returning capital to shareholders via buybacks and dividends," JMP said.
In the hospitality company's fourth quarter of 2014, 2.1 million shares were repurchased for $171 million, bringing full-year buyback spending to $652 million, and reducing the share count by 6% over the course of the year, analysts noted.
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By adding 20% to the dividend, management took the quarterly payout to 42 cents from 35 cents, and increased its 2015 run-rate Free-Cash-Flow target to $800 million from $750 million, JMP said.
Separately, TheStreet Ratings team rates WYNDHAM WORLDWIDE CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate WYNDHAM WORLDWIDE CORP (WYN) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, reasonable valuation levels, solid stock price performance and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 7.9%. Since the same quarter one year prior, revenues slightly increased by 6.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- WYNDHAM WORLDWIDE CORP has improved earnings per share by 17.1% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, WYNDHAM WORLDWIDE CORP increased its bottom line by earning $3.22 versus $2.77 in the prior year. This year, the market expects an improvement in earnings ($4.47 versus $3.22).
- The net income growth from the same quarter one year ago has significantly exceeded that of the Hotels, Restaurants & Leisure industry average, but is less than that of the S&P 500. The net income increased by 10.2% when compared to the same quarter one year prior, going from $186.00 million to $205.00 million.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. When compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, WYNDHAM WORLDWIDE CORP's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
- You can view the full analysis from the report here: WYN Ratings Report