Hedgeye added Ryman Hospitality Properties (RHP) to its list of recommended long stocks on Monday [1].
The move signals a bullish outlook for the company's financial trajectory. This recommendation suggests that institutional investors may see a window of growth for the hospitality sector as operational efficiencies and revenue metrics improve.
Hedgeye analysts expect the stock to see a potential upside of 20% to 30% [2]. The firm based this projection on the belief that the company's current setup will improve significantly as it moves into the second half of 2025 [2].
According to the firm, the company is well-positioned to maintain growth in revenue per available room, commonly known as RevPAR [2]. This metric is a critical indicator of a hotel's ability to fill rooms at competitive rates, a key driver for the firm's optimistic valuation.
"We are going long RHP as the setup meaningfully improves into 2H’25 and beyond, with management positioned to sustain RevPAR growth while driving upside to EBITDA estimates," a Hedgeye analyst said [2].
The analyst's focus on EBITDA estimates indicates that Hedgeye expects the company to increase its earnings before interest, taxes, depreciation, and amortization. This suggests that the firm sees a path toward stronger operational profitability that has not yet been fully priced into the current stock value [2].
“Hedgeye expects a potential upside of 20% to 30% for Ryman Hospitality Properties.”
This recommendation reflects a strategic bet on the recovery and growth of the hospitality industry's operational metrics. By focusing on RevPAR and EBITDA, Hedgeye is signaling that Ryman Hospitality Properties has the fundamental capacity to outpace current market expectations, provided the projected improvements in the second half of 2025 materialize.
