Hilton Grand Vacations: Mizuho Maintains Outperform, Raises PT to $73 from $70.

Hilton Grand Vacations: Mizuho Maintains Outperform, Raises PT to $73 from $70.

Mizuho Securities has raised its price target on Hilton Grand Vacations (NYSE:HGV) to $73.00 from $70.00, while maintaining an Outperform rating on the stock. The vacation ownership company, currently trading at $46.75 with a market cap of $4.29 billion, has shown strong momentum with a 20% return year-to-date according to InvestingPro data [1].

The research firm cited two main factors behind its more bullish outlook: the progress of the Bluegreen upgrade sales and the resolution of sales force challenges that affected the business in the second half of 2024. This optimism aligns with InvestingPro analysis, which shows impressive revenue growth of 17.4% and indicates the company is currently trading near its Fair Value [1].

Mizuho believes the bull case for Bluegreen customer upgrades is "fully underway," noting that Bluegreen historically converted existing owners at only 50% of the rate that legacy HGV converted its existing owners. The firm identified the catalyst for this growth opportunity as the broader and more attractive portfolio under HGV Max, which began showing results in mid-fourth quarter of 2024 [1].

Mizuho also highlighted an incentive structure for legacy Bluegreen owners, who can convert their ownership to HGV Max on a 1:1 basis upon purchasing MAX points, with the minimum threshold estimated at approximately one week or slightly less [1].

In other recent news, Hilton Grand Vacations reported its first-quarter 2025 earnings, revealing an EPS of $0.09, significantly below the forecasted $0.59, with revenue reaching $1.15 billion, also falling short of the anticipated $1.25 billion. Despite these misses, the company maintained its full-year adjusted EBITDA guidance, signaling confidence in its strategic initiatives and future growth plans. Hilton Grand Vacations also completed a $300 million securitization of timeshare loans, which will be used to pay down debt and for other corporate purposes, demonstrating strong investor demand [2].

Mizuho Securities raised the company’s stock price target to $70, maintaining an Outperform rating, while Goldman Sachs increased its price target to $34 but kept a Sell rating, reflecting differing views on the company’s future prospects. JMP Securities reiterated its Market Outperform rating, despite lowering its adjusted EBITDA estimates for 2025 and 2026, citing a strong inventory and cash flow expansion. These developments underscore a mixed analyst outlook, with some expressing optimism about Hilton Grand Vacations’ strategic direction and others remaining cautious [2].

References:
[1] https://www.investing.com/news/analyst-ratings/hilton-grand-vacations-stock-price-target-raised-to-73-by-mizuho-93CH-4143662
[2] https://au.investing.com/news/analyst-ratings/hilton-grand-vacations-stock-price-target-raised-to-73-by-mizuho-93CH-3934438