Wyndham Hotels price target raised to $115 from $90 at Oppenheimer

Oppenheimer raised the firm’s price target on Wyndham Hotels (WH) to $115 from $90 and keeps an Outperform rating on the shares. The firm notes management was bullish and pointed to its long-term EBITDA growth algorithm of 7%-10%. Top line should benefit from room growth of 3%-5%, RevPAR growth of 2%-3%, and royalty rate growth of 50bps. The benefits of the Infrastructure Bill, as well as ancillary growth, including credit cards, are also meaningful sources of growth. While RevPAR has moderated in Wyndham’s economy/midscale segments, Oppenheimer notes the company faces easier comps in Q4 2024, and STR trends for its segments have been positive through early November.