Overview
Stifel raised its price target on Hyatt Hotels (NYSE: H) to $170.00 from $164.00 while retaining a Hold recommendation following the company's fourth-quarter 2025 financial disclosure.
Earnings details
According to Stifel analyst Simon Yarmak, Hyatt reported adjusted earnings per share of $1.33 for the quarter. That result outperformed Stifel's internal estimate by $0.88 and exceeded the Street consensus by $0.96. The analyst attributes a sizable portion of the variance to a tax add-back that lifted adjusted EPS.
Despite the EPS advantage, Hyatt's adjusted EBITDA for the quarter was $292 million, which missed the Street consensus of roughly $296 million. Revenue for the quarter totaled $1.79 billion versus an expected $1.81 billion, representing a modest shortfall to top-line forecasts.
Market reaction
Pre-market trading showed a positive reaction to the results, though specific intraday price movements are not provided here.
Analysis
The quarter presents a mixed picture: a material EPS beat driven in part by a tax add-back, counterbalanced by slight underperformance on adjusted EBITDA and on revenue versus consensus. In response, Stifel adjusted its valuation upward by $6 per share while maintaining a neutral Hold stance on the stock.
Summary of reported figures
- Adjusted EPS: $1.33 (beat Stifel estimate by $0.88; beat Street by $0.96)
- Adjusted EBITDA: $292 million (Street consensus approximately $296 million)
- Revenue: $1.79 billion (consensus $1.81 billion)
- Earnings surprise versus the forecasted $0.37: 259.46%
Context and implications
The results prompted a modest recalibration of Stifel's valuation while the firm's recommendation remained unchanged. The quarter's performance highlights contrasts between bottom-line metrics aided by tax adjustments and operational measures such as EBITDA and revenue that slightly trailed expectations.