Financial markets have weakened due to the strength of North American economies and the expectation of higher interest rates. The consumer is running out of steam, but other parts of the economy, such as infrastructure spending, are in better shape. Goodreid recommends Booking Holdings, Chubb, and Dana as investment opportunities. Booking is well-positioned to capture post-COVID travel dollars, Chubb benefits from higher rates, and Dana is a strong player in the EV revolution. The global sell-off in bonds indicates acceptance of higher interest rates. [ae148b81]
Laurentian Bank's stock drops after analyst downgrades rating, General Motors delays plant conversion, retail sales increase, climate protesters disrupt energy conference, Canadian businesses urged to prioritize climate risk, and more. [754297aa]
Booking Holdings stock has seen a 59% increase in the last year, outpacing the market. The company's record profitability is driven by robust demand and increased revenue. Booking's total revenue in the first half of 2023 was up 32% compared to the same period in 2022, while marketing expenses only increased by 15%. The company's EPS is also up due to a decrease in the total number of shares outstanding. Booking is handling more bookings through its payments platform, which allows it to hold on to customer funds and earn interest. The company believes that AI will enable it to process more customer payments and personalize travel experiences at scale. If the AI strategy is successful, it could further boost Booking's top and bottom line. Investors should watch for the growth of the payment platform and the implementation of AI in the coming quarters. [2b946ca9]
Best Holdings Ltd, a premium hospitality operator in Bangladesh, has overcome challenges to establish a luxury hotel-resort empire. The company faced hurdles such as construction delays and a drop in occupancy rates due to the pandemic. However, it managed to secure contracts with airlines for crew accommodation during the pandemic, which helped sustain revenue. Best Holdings borrowed funds through bonds and converted debt into equity. Despite revenue losses, the company's equity surged and it plans to raise funds through an IPO. Best Holdings has expansion projects including the development of a Marriott hotel, luxury resorts, private villas, and an economic zone. The company expects significant revenue growth in the coming years and aims to clear all debts and leave only assets. It plans to increase the number of rooms in its Le Meridien hotel and open a luxury resort under the Marriott brand. Best Holdings also has plans for a commercial complex and an economic zone. The company believes there is growing demand for luxury accommodations and expects to generate substantial revenue in the future. [358818c2]
Braemar stock has experienced a significant decline in value, but it may be a suitable investment for risk-tolerant investors seeking a 5-9% yield and potential appreciation. The company has survived a year of negative results and has improved its situation for 2021-2023. While there are concerns about the company's performance in a recession and economic downturn, Braemar is seeing a return to normal key performance indicators in the hotel and resort REIT sector. The company's portfolio composition carries some risk, particularly in the resort sector. Despite the recent decline in share price, Braemar's assets are performing above 2019 levels, and the company is actively refinancing and acquiring assets. The company's current maturity schedule and debt obligations are a concern, but management remains confident in their ability to refinance. If Braemar successfully refinances its debt, the share price could reverse and deliver significant returns. However, investing in Braemar carries risks, and there are safer options available for investors seeking similar yields. Analysts have mixed opinions on the stock, with some recommending a buy and others suggesting a hold. The author of the article has a small position in Braemar and believes the company's management team and assets are financiable. The author advises investors to do their own research and due diligence before making any investment decisions. [ab0a344b]
BMO Capital Markets has increased its price target for Hilton shares to $215 from $203, while maintaining a 'Market Perform' rating. The adjustment follows Hilton's investor day, where the company presented improved forecasts for revenue per available room (RevPAR), net unit growth (NUG), fees, EBITDA, and earnings per share (EPS) for the period from 2023 to 2026. BMO Capital highlights Hilton's long-term growth potential, supported by market share gains, a planned $10 billion capital return to shareholders, and opportunities for expansion. However, the firm suggests waiting for a more opportune entry point to become more positive on the stock due to its current valuation. [32b02712]
Evercore ISI has also increased the price target of Hilton Worldwide shares from $200 to $210, while maintaining the stock's rating at In Line. The valuation update followed Hilton's Investor Day event, where the company discussed its achievements since its IPO in 2013, introduced its leadership team, and presented its growth strategy through 2026. Hilton aims to achieve 2-4% Revenue per Available Room (RevPAR) and a Compound Annual Growth Rate (CAGR) of 6-7% in net unit growth. The company plans to source 30-35% of its unit growth from brand conversions and increase royalty fees for some of its brands. Hilton also highlighted its investment in technology and its capital allocation strategy. Evercore ISI's revised price target reflects confidence in Hilton's planned initiatives and expected performance. [a54eb6ba]
Baird, a financial services firm, increased its price target on shares of GoDaddy Inc to $150 from $130, while maintaining an Outperform rating. The adjustment follows a series of investor meetings with GoDaddy's CFO, Mark McCaffrey, and VP of Investor Relations, Christie Masoner. Baird believes that GoDaddy is in the initial stages of a significant transformation with a substantial portion of its growth opportunity still ahead. The firm sees several potential catalysts for growth and considers GoDaddy's current valuation attractive. The increased price target reflects Baird's positive outlook on GoDaddy's performance potential in the market. [0f29cc68]
Hasbro has received a ratings upgrade from Bank of America, with a price target of $80, citing optimism about the company's digital gaming strategy and recovery in its consumer products segment. Monopoly Go! is expected to generate substantial operating profits in the second half of 2024, potentially contributing about $36 million per quarter. Hasbro shares rose 5.5% in early Friday trading following the upgrade. Analysts believe the challenges of trading card game market saturation and core player fatigue are mitigated by the excitement around upcoming game releases and steady consumer interest. Hasbro's consumer products division is experiencing a resurgence, with increased toy sales at retailers like Costco. A Magic: The Gathering artist called out Hasbro CEO Chris Cocks over his comments about AI-generated content, threatening to stop working with the publisher. Hasbro re-released two Transformers toys for the 40th anniversary of the franchise. The release date for Magic: The Gathering - Outlaws of Thunder Junction is August 2, 2024. [45c18637]