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On Tuesday, Travel & Leisure, Inc. (NYSE:TNL), a leading provider of vacation ownership products and services, received a new stock rating from JMP Securities. The company initiated coverage with a Market Outperform rating and set a price target of $50.00 per share. This could represent a potential 18.5% upside from the stock's last closing price of $42.17, with the added benefit of a 4.5% dividend yield, for a potential total return of 23.0%.
JMP Securities' price target is based on a valuation multiple of 7.1 times the company's expected 2025 EBITDA, or 7.4 times its expected 2025 earnings per share. This target multiple is significantly lower than his five-year average multiples for both the Travel + Leisure industry and the broader timeshare industry (7.8x and 8.2x, respectively).
Travel & Leisure's stock price performance and the company's growth potential are underlined by analysts' optimistic outlook. The company's valuation suggests that Travel + Leisure's stock price is poised for appreciation based on its current trading price and the company's financial projections.
The 4.5% yield offered by Travel + Leisure is an additional factor to consider for potential investors, as it increases the stock's total return profile beyond JMP Securities' expected capital appreciation.
Investment Pro Insights
Travel + Leisure Co. (NYSE:TNL) gains attention with a new stock rating from JMP Securities. investment professional Provides additional insight into a company's financial health and market position. With a market capitalization of $3.05 billion, the company trades at a price-to-earnings ratio (P/E) of 9.01x, or 8.08x adjusted to account for the trailing 12 months as of Q3 2023. It peaked at 96.15%, close to its 52-week high, reflecting investor confidence and solid market performance with a three-month total return of 24.51%.
The company's commitment to shareholder returns is evident as it has maintained its dividend for 17 consecutive years and currently has a dividend yield of 4.27%. This is complemented by a dividend growth of 12.5% over last year, demonstrating the company's dedication to delivering value to investors. Additionally, Travel + Leisure's liquidity position is strong, with liquid assets exceeding short-term debt, providing financial flexibility and stability.
For those looking to dig deeper into the potential of Travel + Leisure stock. investment professional provide more investment pro tips, including insight into the company's share buyback strategy and near-term earnings growth potential. Keeping in mind the stock's volatility and high P/E compared to short-term earnings growth can help investors make more informed decisions. For access to more comprehensive analysis and additional tips, please consider a subscription below. investment professional.Use coupon code pro news 24 Get an extra 10% discount on annual or biennial Pro and Pro+ subscriptions and check out 8 additional tips listed for Travel + Leisure Co. on InvestingPro.
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