Park Hotels & Resorts price target raised to $16 from $14.50 at Wells Fargo

Wells Fargo raised the firm’s price target on Park Hotels & Resorts to $16 from $14.50 and keeps an Equal Weight rating on the shares. The firm notes management expects 2025 RevPAR growth to be in the low-to-mid single digits and op ex growth to likely be up in the mid 4% range, taking into account the cost increases of its new labor agreements. Renovation headwinds and tailwinds are currently expected to offset each other in 2025, although a decision to move forward with the Royal Palm South Beach renovation would add a headwind, not likely in consensus, Wells adds.