On Monday, Truist Securities increased its price target on shares of Ryman Hospitality Properties (NYSE:RHP) to $136.00, up from the previous target of $130.00. The firm has maintained a Buy rating on the stock.
The adjustment follows recent investor meetings with Ryman Hospitality's executive team, which were led by Truist Securities last week. These discussions focused on several key topics, including booking trends projected for the years 2025 to 2027, as well as near-term and long-term expectations for the company's Opry Entertainment Group (OEG) segment. Additionally, the talks included insights into the Gaylord Pacific property.
According to the analyst from Truist Securities, Ryman Hospitality Properties has been able to avoid some of the challenges that other hotel real estate investment trusts (REITs) have faced during this past earnings season.
Specifically, Ryman did not have to address issues related to labor strikes or hurricane damage. The analyst noted that while the company has previously encountered difficulties with weather and flood issues, these were not current concerns that needed attention.
Investors and market watchers may view this updated price target as a sign of the company's robust prospects, particularly in light of the detailed discussions regarding its various business segments and properties. The focus on future bookings and the absence of recent labor or weather-related setbacks positions Ryman Hospitality Properties favorably for the upcoming years.
In other recent news, Ryman Hospitality Properties reported a record consolidated total revenue of $550 million in the third quarter of 2024, marking a 4.1% increase year-over-year. The company's adjusted EBITDAre also rose to $175 million, up 2.3% from the previous year, primarily due to strong performance in both the hospitality and entertainment segments.
Amid these developments, Ryman Hospitality revised its 2024 guidance, adjusting RevPAR growth and EBITDAre ranges due to market softness and construction disruptions. Yet, the midpoint for consolidated adjusted EBITDAre guidance was raised to $770.5 million, reflecting an 11.5% increase from the previous year.
The company also declared a quarterly dividend of $1.15, a 4.5% increase from the previous distribution.
In addition, Ryman Hospitality is exploring a potential expansion at the Gaylord Rockies, targeting 450 additional rooms. Despite some challenges, including the impact of Hurricane Milton, the company remains optimistic about its performance and future growth opportunities.
InvestingPro Insights
Recent data from InvestingPro adds depth to Truist Securities' positive outlook on Ryman Hospitality Properties (NYSE:RHP). The company's financial metrics align with the analyst's optimistic stance, showing a robust revenue growth of 12.62% over the last twelve months as of Q3 2023. This growth trajectory supports the positive booking trends discussed in investor meetings.
RHP's strong financial health is further evidenced by its ability to cover short-term obligations with liquid assets, as highlighted by one of the InvestingPro Tips. This financial stability is crucial for a company in the capital-intensive hospitality industry, especially when considering expansion projects like the Gaylord Pacific property.
The company's dividend policy also stands out, with RHP having raised its dividend for 3 consecutive years. Currently offering a dividend yield of 4.13%, this not only provides an attractive income stream for investors but also signals management's confidence in the company's future cash flows.
For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips on RHP, providing a deeper understanding of the company's financial position and market performance.
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