Playa Accommodations & Resorts N.V. (NASDAQ:PLYA) fell in early buying and selling on Monday after Financial institution of America moved straight to an Underperform score on the leisure inventory after having it slotted with a Purchase score.

Following an extended interval of the Caribbean being one of many largest COVID beneficiaries within the leisure sector, analyst Shaun Kelley and workforce now see dangers from softening demand tendencies and shifts to different tourism markets. Playa (PLYA) can be famous to have larger working leverage than asset-light lodging and journey friends.

Different elements which might be seen as probably working in opposition to PLYA within the close to time period embody value normalization, provide development, and seasonality with an lively hurricane season within the forecast.

BofA assigned a brand new value goal of $8 vs. $10 prior. The value goal displays a 9X 2024 EV/EBITDA a number of off an estimate for decrease, normalized earnings of $235M in 2024.

Shares of PLYA had been down 5.36% to $8.12 at 10:51 a.m. The leisure inventory remains to be up greater than 25% for 2023.

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