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Morgan Stanley Raises Travel + Leisure (TNL) Price Target to $80

We recently published an article titled 10 Best Cruise Stocks to Buy Right Now.

On January 16, Morgan Stanley raised its price target on Travel + Leisure Co. (NYSE:TNL) to $80 from $68 while maintaining an Overweight rating. In its 2026 sector outlook, the firm noted that gaming, lodging, and leisure fundamentals were relatively muted in 2025, with pockets of resilience concentrated among companies catering to older and higher-income consumers. Looking ahead, Morgan Stanley expects similar underlying trends in 2026, albeit with incremental macro influences such as interest rate dynamics potentially favoring goods over services. Within this context, Travel + Leisure’s customer demographic and recurring revenue model position it favorably relative to broader discretionary peers.

In the third quarter of 2025, Travel + Leisure Co. (NYSE:TNL) generated net income of $111 million, or $1.67 per diluted share, on net revenue of $1.04 billion. Adjusted EBITDA reached $266 million, with adjusted diluted EPS of $1.80, reflecting continued operational discipline. The Vacation Ownership segment delivered 6% year-over-year revenue growth to $876 million, supported by a 10% increase in volume per guest, underscoring sustained consumer demand within its core membership base. The company returned $106 million to shareholders through dividends and share repurchases and advanced its multi-brand strategy with the launch of the Eddie Bauer Adventure Club and the announcement of a Sports Illustrated Resort in Chicago. These initiatives broaden brand reach and diversify revenue streams, reinforcing the company’s ability to drive earnings growth and shareholder returns despite a tempered industry backdrop.

Founded in 2006 and headquartered in Orlando, Florida, Travel + Leisure Co. (NYSE:TNL) develops, markets, and manages vacation ownership properties under brands including Club Wyndham, WorldMark by Wyndham, Margaritaville Vacation Club, and Accor Vacation Club. Its asset-light, membership-driven model provides recurring cash flow visibility and leverage to resilient leisure demand trends.

While we acknowledge the potential of TNL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TNL and that has a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 8 Up and Coming Streaming Companies and Services and 11 Best Canadian Growth Stocks to Buy According to Hedge Funds.

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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