Wells Fargo Initiates Wyndham Hotels (WH) with 'Equal Weight', $82 PT

Wyndham Hotels & Resorts Inc. (NYSE:WH) is one of the most undervalued NYSE stocks to buy right now. On November 18, Wells Fargo initiated coverage of Wyndham Hotels with an Equal Weight rating and $82 price target. Although the company’s shares are currently considered cheap, the analyst remains cautious because consensus earnings estimates still seem overly optimistic. Wells Fargo is maintaining a neutral stance and will wait for an improvement in Wyndham’s Revenue Per Available Room/PAR or reported fee growth before considering an upgrade.

In its Q3 2205 earnings report released earlier, Wyndham Hotels & Resorts disclosed a decline of 5% year-over-year in its Revenue PAR. Fee-Related and Other Revenues totaled $382 million and dropped by 3% decline due to the drop in Revenue PAR. On the growth front, the company achieved a 21% increase in room openings and a 24% increase in deals signed during the quarter. This expansion drove net room growth internationally by 9%, and the overall global pipeline grew by 4% to reach a record 257,000 rooms across ~2,200 hotels. This pipeline carries a Fee Par premium of over 30% domestically and 25% internationally.

Wyndham’s full-year Revenue PAR outlook is now expected to decline 2% to 3% in constant currency, which is a reduction of 1% to 3% from previous expectations. The outlook for Fee-Related and Other Revenues is $1.43 to $1.45 billion. The company was also able to generate $382.00 million in quarterly revenue and earn $1.46 per share.

Wyndham Hotels & Resorts Inc. (NYSE:WH) operates as a hotel franchisor in the US and internationally.

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Disclosure: None. This article is originally published at Insider Monkey.