Shares of Wyndham Hotels and Resorts Inc (NYSE: WH) have come down roughly 7.0% since late March, but Daniel Adam sees good times for the investors ahead.
Wyndham is a reopening play
The Loop Capital analyst says Wyndham is a reopening play that’s his “top pick” in the lodging space. Explaining his bullish view on CNBC’s “Power Lunch”, he said:
It’s because of its domestic exposure and drive in traffic. Headwinds related to higher fuel costs will deter some from travelling by air. But the drive in traffic should remain robust. So, we expect to see continued tailwinds for Wyndham.
Adam rates the world’s largest hotel franchisor at “buy” with a price target of $100 a share that represents a 25% upside from here.
Wyndham is attractive on valuation
Wyndham expects 2022 to be another strong year for its Asia Pacific business. According to the senior analyst, the recent sell-off makes Wyndham Hotels and Resorts an even attractive pick in terms of valuation.
In addition is its valuation. Wyndham is trading at less than 14 times forward EBITDA. It’s nearly two turns below the peer group.
The American hotel company declared 32 cents a share of quarterly dividend last month. WH is expected to report its quarterly results in the final week of April.
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Source: https://invezz.com/news/2022/04/11/loop-capital-gives-away-its-top-lodging-stock/