BMO Upgrades Park Hotels & Resorts; Shares Rise in Pre-Market Trading
Park Hotels & Resorts (NYSE:PK) shares rose 1.0% to $15.45 in pre-market trading following an upgrade from BMO Capital Markets, which raised its rating to 'Outperform' and increased the price target to $18 from $14. The new target implies a potential upside of about 17.6%. Analysts cited Park's portfolio transformation and strong demand outlook through 2027 as key factors behind their positive assessment. The upgrade follows better-than-expected second-quarter results in August, with adjusted funds from operations (AFFO) at $0.70 per share versus a consensus estimate of $0.62, and revenue reaching $680 million against expectations of around $663 million. Other analysts also raised their price targets, including Cantor Fitzgerald to $15 while maintaining 'Neutral,' and Wells Fargo with an 'Equal Weight' rating at the same target. Park Hotels & Resorts is preparing for upcoming debt maturities by utilizing a newly secured $700 million delayed draw loan facility. The stock's pre-market rise occurred amid broader declines in U.S. equity markets, including drops of 0.5% and 1.0% in the S&P 500 and Nasdaq respectively.
Tickers: $PK