Wyndham Hotels (WH) Price Target Raised to $115

Wyndham Hotels & Resorts stock (NYSE: WH) experienced a marginal decrease in regular trading, closing at $101.18 representing a slight downtick of approximately 0.70% from Friday's close. Now this pre-market, the stock is falling further, down 0.67% as the market gears up for open.

Despite this healthy pullback, Goldman Sachs elevates its stance on the hotel franchisor's financial prospects, and with Wyndham's stock up 26.05% on a year-to-date basis having recently made new 52 week highs, the trend is clearly bullish.

Goldman Sachs has adjusted its price target for Wyndham Hotels to $115 from the previous $100, sustaining a Buy rating on the shares. The revision is based on a roll-forward valuation to the 2026 estimates. This reassessment comes after Wyndham's shares did not witness considerable multiple expansion through the end of 2023. The relative stagnation was largely attributed to investor uncertainties amid the “noise” around Choice Hotels' (NYSE: CHH) attempted hostile takeover of Wyndham. Analysts suggest that Wyndham shares ought to trade at a premium compared to their current levels.

Based in Parsippany, New Jersey, Wyndham Hotels & Resorts operates as a hotel franchisor across the globe. Focused on its Hotel Franchising and Hotel Management segments, the company also manages guest loyalty programs. Wyndham's portfolio boasts recognizable brand names in the lodging industry, including Super 8, Days Inn, and La Quinta, among others.

Wyndham Hotels has a market capitalization of approximately $7.87 billion, with shares circulating in the 52-week window between $67.67 and $103.17. The stock's recent movement included an opening at $101.9 and oscillation between a daily low of $100.74 and a high of $102.29.

Financially, the company upholds a trailing P/E ratio of 32.02 and a more promising forward P/E ratio of 21.26. Furthermore, Wyndham offers a dividend rate of $1.52, accounting for a yield of roughly 1.49%, and a payout ratio near 47.15%. The firm's most recent reports indicate total revenue of over $1.38 billion and a net income to common shareholders of $253 million.

With 16 analysts providing an opinion, Wyndham Hotels has an average price target of $100.50 and a consensus recommendation of Buy, as indicated by a mean recommendation of 1.75. The hotel franchisor continues its operations within a competitive Consumer Cyclical sector, where it remains a dominant player in the Lodging industry segment.

In conclusion, Wyndham Hotels & Resorts' revised price target by Goldman Sachs underscores heightened optimism regarding the company's growth trajectory, predominantly as it recovers from the turmoil triggered by takeover endeavors and pandemic-induced challenges.