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HLT – Market expectations are for Uniform ROA to expand, but management may have concerns about demand, growth, and margins
March 15, 2022
Hilton Worldwide Holdings Inc. (HLT) currently trades above corporate but below historical averages relative to Uniform earnings, with a 34.3x Uniform P/E (Fwd. V/E’).
At these levels, markets are pricing in expectations for Uniform ROA to expand to 116%, accompanied by 3% Uniform asset growth.
Meanwhile, analysts expect Uniform ROA to improve to 65% in 2022, accompanied by 85% Uniform asset growth.
If sustained going forward, these levels would imply a stock price closer to $1101, representing significant potential equity upside for the firm.
That said, the firm’s most recent earnings call suggests management may have concerns about demand, growth, and margins.
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