PK - Park Hotels & Resorts: Asymmetrical Returns In The Cards
2024-06-11 00:02:51 ET
Summary
- Given its robust fundamental growth and aligned valuation, we maintain our buy rating on Park Hotels & Resorts Inc.
- PK REIT's latest results show illustrious unitary growth. Moreover, a spread between asset-level returns and liability costs is encouraging.
- Despite the high cost, a solid development pipeline and unit upgrades could add value.
- Our relative valuation of PK REIT suggests it is an undervalued asset. Moreover, key metrics suggest PK REIT has a solid dividend profile.
- Despite the positives, we urge investors to consider risks such as technical pricing pressure and macroeconomic headwinds.
This article explores real estate investment trusts (REITs), with particular emphasis on Park Hotels and Resorts Inc. ( PK ) , an asset that has surged by more than 25% since we last covered it in October .
Pearl Gray's Past PK Ratings (Seeking Alpha)
Our basis for assigning a buy rating in October was Park Hotels & Resorts' operational prowess and PK REIT's valuation. However, various events have occurred since our latest coverage, prompting us to revisit Park Hotels & Resorts' prospects....
Park Hotels & Resorts: Asymmetrical Returns In The Cards