Mizuho Analyst Ben Chaiken has begun covering the company's stock. Travel + Leisure Co., Ltd. 
TNL The rating is “neutral” and the price target is $55.
Two headwinds in the vacation ownership interest (VOI) sector are making analysts more cautious. One is the acceleration of new owner sales and the other is interest rate increases in the financial business, compressing net interest margins and leading to $30 million in EBITDA. Headwinds for fiscal 2024.
Analyst VOI segment EBITDA is slightly lower at $738 million compared to FY24's EBITDA of $734 million and remains roughly flat in FY25.
Within the Travel & Membership segment, analysts believe the exchange business faces structural headwinds from industry consolidation, impacting overall EBITDA growth.
TNL's travel clubs aren't gaining the traction the market once expected, and analysts can't see a solution.
Although headwinds are likely to be felt in FY24, the long-term setup is reassuring as VOI's new ownership structure eases headwinds, funding headwinds flatten and there are no obvious harsh comparisons, analysts say. said.
The $55 price target applies a 7x multiple to the analyst's 25-year EBITDA of $972 million and 1-year free cash flow.
price action:TNL stock is trading 0.46% lower at $47.56 on Tuesday.
Image: Unsplash/Charlotte Noel
TNL's latest reviews
| date | hard | action | from | to |
|---|---|---|---|---|
| October 2021 | credit suisse | maintain | excellent | |
| September 2021 | jeffries | downgrade | buy | possession |
| July 2021 | credit suisse | maintain | excellent |
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