Deutsche Bank raises Hilton to buy on valuation reset

Deutsche Bank upgraded Hilton Worldwide Holdings Inc. to buy from hold on Monday, citing a reset in market expectations and improved valuation following a recent pullback in the stock.

Analysts led by Vitaly Gordon said in a note that the risk-reward profile for Hilton shares had become more favorable as investor expectations adjusted to reflect current market conditions. The upgrade comes amid expectations that sustained demand for travel and hospitality would support the company’s financial performance.

Hilton’s shares have declined in recent weeks, reflecting broader market volatility and sector-specific concerns. The bank’s analysts noted that the pullback had created an opportunity to reassess the stock’s valuation, which they now view as more attractive relative to its long-term growth prospects.

The upgrade follows a period of heightened uncertainty in global travel markets, though recent data suggests resilience in consumer spending on leisure and business travel. Deutsche Bank’s move aligns with a broader trend of selective upgrades in the travel and hospitality sector as investors seek exposure to areas poised to benefit from pent-up demand.

Hilton did not immediately respond to a request for comment.