Travel + Leisure has agreed to acquire 23 resorts from Yes& Vacations and Spinnaker Resorts, with management expecting the combined portfolio to contribute about $50 million in annual adjusted EBITDA. The deal comes as the company's share price has eased in the short term, with recent daily and monthly returns declining, while longer-term total shareholder returns remain strongly positive. Based on the most followed narrative, Travel + Leisure's fair value sits at $74.00, just above the last close of $73.27, suggesting the stock is undervalued. The assumed bearish price target is also $74.00, which is up to two standard deviations below the consensus price target of $87.08.
Travel + Leisure CoAcquiring 23 resorts adds $50M annual adjusted EBITDA, boosting earnings.