JPMorgan Rates Hilton Overweight, Projects Strong EBITDA Growth

Hilton Worldwide Holdings Inc. (NYSE:HLT) ranks among the best cyclical stocks to buy now. On June 23, JPMorgan began coverage of Hilton Worldwide Holdings Inc. (NYSE:HLT) with a $282 price target and an Overweight rating.

With a high-single-digit EBITDA growth potential and a robust free cash flow conversion of 50–55%, the investment bank sees Hilton Worldwide Holdings Inc. (NYSE:HLT) as a high-quality company that can support 5-6% annual share repurchases to boost mid-teens EPS growth.

JPMorgan Rates Hilton Overweight, Projects Strong EBITDA Growth

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The firm found that Hilton’s premium value, which accounts for over 60% of its yearly EBITDA growth, as the key driver of its industry-leading net unit growth.

Through discounted cash flow analysis, JPMorgan determined that Hilton’s EBITDA would rise by more than $25 million for every percentage point of net unit growth, resulting in a fair value of around $300 per share.

Hilton Worldwide Holdings Inc. (NYSE:HLT) is an American multinational hospitality company that operates and leases a wide range of timeshare properties, hotels, and resorts. Its varied portfolio also includes the luxury brands Waldorf Astoria and Conrad Hotels.

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