On Tuesday, Deutsche Bank (ETR:DBKGn) reiterated its Buy rating on Park Hotels & Resorts (NYSE:PK) with a steady price target of $23.00.
Following a series of management-led property tours and presentations in Key West and Orlando, the firm expressed continued confidence in the company's valuation. Park Hotels & Resorts' assets, which represent over 15% of its EBITDA, were showcased, reinforcing the belief that the current market valuation does not fully reflect the company's Net Asset Value (NAV), even excluding potential future projects.
Analysts from Deutsche Bank suggest that Park Hotels & Resorts is on track to meet or exceed the current Wall Street forecasts for 2024. They emphasize that the valuation of the company could be approached from various angles, with a focus on the portfolio excluding Hawaii, where the Honolulu and Waikoloa resorts are considered to have a minimum valuation of 12.5x EBITDA.
The feedback from the Key West property tours highlighted the strength of these assets, while the outlook for the broader Orlando market was also optimistic. The tours at Bonnet Creek provided additional positive takeaways, and the firm shared insights into the company's growth potential outside of these two markets.
In summary, Deutsche Bank's report underscores a positive perspective on Park Hotels & Resorts' financial prospects. The firm's maintained price target of $23.00 reflects their conviction in the company's ability to achieve its financial targets and grow its valuation in the near future.
InvestingPro Insights
InvestingPro data indicates that Park Hotels & Resorts (NYSE:PK) has a market capitalization of $3.38 billion and is trading at a high earnings multiple, with a P/E ratio of 37.79 and an adjusted P/E for the last twelve months as of Q1 2024 at 53.18. Despite a modest revenue growth of 0.26% over the last twelve months, the company's dividend yield stands at an attractive 6.23%, highlighting a substantial return to shareholders. Additionally, Park Hotels & Resorts has exhibited a strong 1-year price total return of 41.21%, signaling robust investor confidence.
According to InvestingPro Tips, the company is a prominent player in the Hotel & Resort REITs industry and has been profitable over the last twelve months. The liquidity of the company is solid, with liquid assets surpassing short-term obligations, which may reassure investors about the company's financial health. For those interested in deeper analysis, there are additional InvestingPro Tips available, offering further insights into Park Hotels & Resorts' financial performance and stock valuation. To explore these tips and enhance your investment strategy, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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