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This Just In: Analysts Are Boosting Their Hyatt Hotels Corporation (NYSE:H) Outlook for This Year
Celebrations may be in order for Hyatt Hotels Corporation (NYSE:H) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects.
After this upgrade, Hyatt Hotels' 16 analysts are now forecasting revenues of US$5.7b in 2022. This would be a sizeable 88% improvement in sales compared to the last 12 months. Losses are expected to turn into profits real soon, with the analysts forecasting US$0.82 in per-share earnings. Prior to this update, the analysts had been forecasting revenues of US$5.0b and earnings per share (EPS) of US$0.49 in 2022. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.
Check out our latest analysis for Hyatt Hotels
Despite these upgrades, the analysts have not made any major changes to their price target of US$95.78, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Hyatt Hotels analyst has a price target of US$114 per share, while the most pessimistic values it at US$80.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. One thing stands out from these estimates, which is that Hyatt Hotels is forecast to grow faster in the future than it has in the past, with revenues expected to display 88% annualised growth until the end of 2022. If achieved, this would be a much better result than the 15% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 18% per year. So it looks like Hyatt Hotels is expected to grow faster than its competitors, at least for a while.
The Bottom Line
The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Some investors might be disappointed to see that the price target is unchanged, but we feel that improving fundamentals are usually a positive - assuming these forecasts are met! So Hyatt Hotels could be a good candidate for more research.
Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Hyatt Hotels analysts - going out to 2024, and you can see them free on our platform here.
Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.
What are the risks and opportunities for Hyatt Hotels?
Hyatt Hotels Corporation operates as a hospitality company in the United States and internationally.
Rewards
Trading at 27.1% below our estimate of its fair value
Earnings are forecast to grow 4.7% per year
Became profitable this year
Risks
Significant insider selling over the past 3 months
Has a high level of debt
Further research on
Hyatt Hotels
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
About NYSE:H
Hyatt Hotels
Hyatt Hotels Corporation operates as a hospitality company in the United States and internationally.
Slightly overvalued with limited growth.
