BUZZ-Truist downgrades Playa Hotels & Resorts to 'hold'; shares down

Reuters
01-08
BUZZ-Truist downgrades Playa Hotels & Resorts to 'hold'; shares down

** Brokerage Truist Securities downgrades Playa Hotels & Resorts PLYA.O to "hold" from "buy"

** Says co's small market cap portfolio makes it an event-driven name and not an easy stock to own for "long-only" holders; notes shares are trading near fundamental value

** Says "idiosyncratic" events, including hurricanes and travel warnings, happen just as co starts exceeding earnings growth due to the volatile environment in its base of Caribbean

** Believes 2026 is the time to value co properly, given 2025's renovation disruptions properly

** Also, sees likelihood of co's takeover by Hyatt Hotels H.N being not completed, but says it has potential for being a "good deal" for Hyatt

** Three of five brokerages rate the stock "buy" or higher, and two "hold" with a median PT of $12.50

** PLYA Shares down as much as 2.5% to $12.24 after hitting a record high on Monday, it gained ~46% last year

(Reporting by Neil J Kanatt in Bengaluru)

((Neil.JKanatt@thomsonreuters.com;))

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