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Fly News Breaks for August 20, 2019
VAC, HGV, APO
Aug 20, 2019 | 14:04 EDT
JPMorgan analyst Brandt Montour upgraded Marriott Vacations to Overweight from Neutral, with a $118 price target. The analyst believes the New York Post article about Apollo Global (APO) looking to either take Hilton Grand Vacations (HGV) private or merge with its Diamond Resorts as credible, and sees the $36 potential takeout price cited by the publication as credible. The implied valuation ultimately makes Marriott Vacations look too cheap to ignore, he contends, adding that he sees it as the best positioned of the three public timeshare companies in terms of fundamentals, given its self-help levers for value creation, and its flexible points-based sales model supporting relatively smoother sales growth compared to peer Hilton Grand Vacations.
News For VAC;HGV;APO From the Last 2 Days
APO
Sep 19, 2019 | 12:22 EDT
Blackstone (BX) and Apollo Global (APO) are eyeing a bid for a majority interest in Western Midstream Partners (WES) being sold by Occidental Petroleum (OXY), Bloomberg's Kiel Porter reports, citing people familiar with the matter. Global Infrastructure Partners and KKR (KKR) are also interested in bidding as well, the author notes. Reference Link
HGV
Sep 19, 2019 | 10:26 EDT
Catch up on today's top five analyst downgrades with this list compiled by The Fly: 1. Costco (COST) downgraded to Underperform from Market Perform at Bernstein with analyst Brandon Fletcher saying "membership exhaustion" poses risks to the company's U.S. and international growth. 2. Bandwidth (BAND) downgraded to Underweight from Equal Weight at Morgan Stanley with analyst Meta Marshall saying the company is a good play on the growth of next-generation communications but its relative valuation versus peers "gives too much credit for platform depth." 3. Akamai (AKAM) downgraded to Sector Weight from Overweight at KeyBanc with analyst Brandon Nispel saying the downgrade is based on his view that accelerating growth for CDN in 2020 is built into expectations and the stock's valuation. 4. Hilton Grand Vacations (HGV) downgraded to Neutral from Buy at Goldman Sachs with analyst Stephen Grambling saying while leveraged buyout internal rate of returns could be attractive to $40 per share or higher, other names in the Lodging space offer better risk-adjusted returns. 5. U.S. Steel (X) downgraded to Underperform from Outperform at Macquarie with analyst David Lipschitz saying he expects steel prices to stay weak and the company's cash flow to be under pressure in a weak pricing environment. This list is just a portion of The Fly's full analyst coverage. To see The Fly's full Street Research coverage, click here.
HGV
Sep 18, 2019 | 12:14 EDT
Shares of Hilton Grand Vacations (HGV) moved higher after Scott Deveau of Bloomberg reported that Paul Singer's Elliott Management has built a stake in the company and is pushing for a sale. Citing people familiar with the matter, Deveau says Elliott has built a less than 5% stake in Hilton Grand Vacations and has been advocating for the time-share operator to sell itself. Shares of Hilton Grand Vacations are up 12c to $33.92 in midday trading. Reuters on August 29 reported that the company is exploring strategic alternatives, including a potential sale, following acquisition interest from private equity firms. Hilton Grand Vacations was spun out of Hilton (HLT) in 2017.
HGV
Sep 18, 2019 | 11:59 EDT
Activist investor Elliott is said to have built a stake in Hilton Grand Vacations and is pushing the company to sell itself, according to Bloomberg.