Wyndham Locations introduced the acquisition of Journey + Leisure model and associated property from media firm, Meredith Corp., for $100 million. Shares of the world’s largest trip membership and change firm closed 7.8% larger following the information on Wednesday.
Wyndham (WYND) stated that the acquisition of Journey + Leisure would come with the model’s journey golf equipment and its almost 60,000 members. The corporate believes that the deal will broaden its attain to new leisure journey and licensing markets within the business.
After the completion of the deal in mid-February, Wyndham shall be renamed as Journey + Leisure Co. and can commerce on NYSE with a brand new ticker image, TNL.
The transaction is more likely to be impartial to earnings within the first yr and can develop into earnings accretive within the second yr. (See WYND stock analysis on TipRanks).
In accordance with the phrases of the deal, Meredith (MDP) will proceed to function and monetize Journey + Leisure’s media platforms, underneath a 30-year licensing settlement.
Following the deal, Oppenheimer analyst Ian Zaffino lifted WYND’s value goal to $55 (about 12% upside potential) from $40 and maintained a Purchase score. In a word to buyers, Zaffino stated, “the addition of Journey + Leisure may also help increase the corporate’s providers and choices going ahead.”
General, the remainder of the Avenue is firmly bullish on the inventory with a Robust Purchase analyst consensus backed by 4 unanimous Buys. The common price target of $47 implies draw back potential of round 4.3% over the subsequent 12 months.
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