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Wyndham Hotels & Resorts: Buy Rating Supported by Strong Financial Outlook and Growth Potential

Wyndham Hotels & Resorts: Buy Rating Supported by Strong Financial Outlook and Growth Potential

Wells Fargo analyst Daniel Politzer has reiterated their bullish stance on WH stock, giving a Buy rating yesterday.

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Daniel Politzer has given his Buy rating due to a combination of factors, including Wyndham Hotels & Resorts’ strong financial outlook and potential for revenue growth. The company’s 2025 guidance for earnings before interest, taxes, depreciation, and amortization (EBITDA) has exceeded market expectations by 1%, and the implied 2026 EBITDA surpasses Street estimates by 4%. This positive outlook is supported by accelerating ancillary revenues, improving revenue per available room (RevPAR) trends, and increasing fees per available room (FeePAR).
Wyndham’s pipeline also suggests a significant premium to its existing footprint in both the U.S. and international markets, indicating potential for future growth. The company’s infrastructure investments are expected to contribute positively to RevPAR growth, and its strong credit and debit card deals are driving ancillary revenue enhancements. Additionally, the current valuation of Wyndham’s stock presents a potential for re-rating, making it an attractive investment opportunity in Politzer’s view.

In another report released yesterday, Morgan Stanley also maintained a Buy rating on the stock with a $107.00 price target.

WH’s price has also changed dramatically for the past six months – from $73.030 to $107.320, which is a 46.95% increase.

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