According to the Reuters consensus, out of the 25 analysts tracking Hilton (HLT), 32% have a “strong buy” recommendation on the stock, and 52% have a “buy” recommendation on the stock. 8% of analysts have a “hold” rating. The remaining 8% have a “sell” rating on the stock.
Many analysts have upgraded the stock since its 4Q16 results. Only 50% of the analysts had a “buy” or similar rating on Hilton stock before 4Q16. Now 84% of analysts recommend a “buy.” At the start of April, Telsey Advisory Group downgraded the stock from “outperform” to “market perform.” In January, Bernstein upgraded the stock from “market perform” to “outperform.” In the same month, Berenberg downgraded the stock from a “hold” to a “sell,” and Goldman Sachs has initiated coverage with a “buy” rating.
Hilton’s consensus 12-month target price is $64.6, which indicates a 12.6% return potential over its April 21 closing price of $58. This target is significantly lower than the previous target price of $84.2 after its 4Q16 results and $78.52 after its 3Q16 results. The highest target price for the stock is $77, and the lowest is $47.
Investors can gain exposure to hotel stocks by investing in the Consumer Discretionary Select Sector SPDR ETF (XLY), which holds 0.63% in Marriott International (MAR) and 0.38% in Wyndham Worldwide (WYN). Other major hotel stocks include Hilton Worldwide (HLT) and Hyatt Hotels (H).