JM Financial initiates a ‘Buy’ rating on Juniper Hotels, Hyatt’s owner, projecting shares could rally up to Rs 450, signaling strong growth potential ahead.
Juniper Hotels, the largest holder of Hyatt-affiliated properties in India, has received a target price of Rs 450 per share from JM Financial, which has initiated coverage on the hospitality company with a ‘buy’ rating. The brokerage cites the company’s promising growth trajectory as a key factor in its optimistic outlook for the luxury hotel developer.
This target represents a 21% upside from Juniper Hotels’ current market price of Rs 372.05 on the Bombay Stock Exchange (BSE). On Monday, shares of Juniper were down 1.1%.
The company, which operates 2,115 rooms across eight luxury and upscale hotels in major cities like Mumbai, Delhi, and Bengaluru, is poised to benefit from its strong partnership with global hospitality leader Hyatt and its association with experienced developer Saraf Hotels. The brokerage points to Juniper’s solid business fundamentals and favorable industry trends as key drivers of its growth potential.
JM Financial projects that Juniper Hotels will see a compounded annual growth rate (CAGR) of 15% in revenue and 20% in EBITDA between FY24 and FY27. The firm also anticipates that EBITDA margins will expand to 43%. These projections are supported by the company’s operational efficiencies and plans to add over 1,000 rooms through acquisitions and brownfield developments over the next three years.
Strategically located in high-demand areas such as Mumbai’s Bandra Kurla Complex and Delhi Aerocity, Juniper Hotels’ properties cater to both business and leisure travelers. The brokerage highlights that the company’s assets benefit from high barriers to entry in these premium locations, positioning it to capitalize on favorable demand-supply dynamics.
The post Hyatt-owner Juniper Hotels’ shares can rally up Rs 450, says JM Financial as it initiates a ‘Buy’ rating appeared first on Travel And Tour World.
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