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The travel and tourism industry has boomed in the aftermath of the pandemic. Playa Hotels and Resorts are a testament to this as the company has reported an uptick in its income during Q1 2023. Growing demand for travel and tourism has enhanced Playa’s Q1 2023 earnings, making analysts bullish on this stock.

Playa’s resort properties are located across popular beachfront locations that are destination hotspots for travelers. The company’s majority revenues are generated from the Yucatan Peninsula segment and some of its popular constituent brands include Hyatt Ziva, Jewel Resorts and Hyatt Zilara.

The company released its Q1 2023 earnings report on May 4, 2023, post which analysts reviewed their recommendations on the stock. As per data available on EODHD/Others, three analysts have given the stock a ‘Strong Buy’ rating while three others have given it a ‘Buy’ rating.

Source: EODHD/Others

The consensus mean price target for Playa stands at US$ 13.33, which is 48.9% higher than its closing price of US$ 8.95 on May 10, 2023. However, the price target for PLYA ranges from US$10 to US$ 16.

PLYA receives an ‘Outperform’ rating

PLYA stock received rating upgradations in the days following the release of its Q1 2023. Data available on EODHD/Others shows that most brokers reviewed their recommendations for the stock after May 4, 2023.

Oppenheimer & Co. gave PLYA stock an ‘Outperform’ rating following the release of its Q1 2023 results. Data on EODHD/Others suggests that the broker’s price target for the stock was US$ 14, which marks an upside potential of 56.4% over its closing price on May 10, 2023.

Macquarie also upgraded its rating to ‘Outperform’  on May 8, 2023, with a price target of US$ 16. Apart from these brokers, PLYA bagged a ‘Buy’ rating from Truist Securities on May 4, 2023. Truist Securities maintains a price target of US$ 13, which is 45.25% higher than its closing price on May 10, 2023.

Playa’s financial results

Playa reported an uptick in its quarterly total revenue. In Q1 2023, the company’s revenue stood at US$ 273.8 million, higher than its revenue in Q1 2022 of US$ 219.57 million.

Meanwhile, the company’s net income was US$ 42.719 million in Q1 2023. This was lower than its Q1 2022 net income of US$ 42.74 million. The company’s EBITDA in Q1 2023 was US$ 96.392 million. This was 31.8% higher than its Q1 2022 EBITDA of US$ 73.02 million.

Image source: ©2023 Kalkine®; Data source: Company Reports

The company’s Yucatan Peninsula segment delivered a net revenue increase of US$ 20.1 million or 29% in Q1 2023. The increase primarily came due to an increased demand from Canadian, Mexican and US sourced guests.