Travel + Leisure initiated with an Overweight at Morgan Stanley

Morgan Stanley initiated coverage of Travel + Leisure (TNL) with an Overweight rating and $67 price target The company’s strategic pivot to focusing on higher credit score customers, even at the expense of growth near term, is “finally paying off” with an improvement in owner growth and potential for structurally lower defaults and provision, the analyst tells investors in a research note. The firm says that despite apparent stabilization in its membership segment, Travel + Leisure shares still trade at a “compelling” multiple. It believes a return to growth should catalyze both upside to estimates and the stock.