Morgan Stanley Raises Travel + Leisure (TNL) Price Target to $80
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On January 16, Morgan Stanley raised its price target on Travel + Leisure Co. (NYSE:TNL) to $80 from $68 while maintaining an Overweight rating. In its 2026 sector outlook, the firm noted that gaming, lodging, and leisure fundamentals were relatively muted in 2025, with pockets of resilience concentrated among companies catering to older and higher-income consumers. Looking ahead, Morgan Stanley expects similar underlying trends in 2026, albeit with incremental macro influences such as interest rate dynamics potentially favoring goods over services. Within this context, Travel + Leisure’s customer demographic and recurring revenue model position it favorably relative to broader discretionary peers.
In the third quarter of 2025, Travel + Leisure Co. (NYSE:TNL) generated net income of $111 million, or $1.67 per diluted share, on net revenue of $1.04 billion. Adjusted EBITDA reached $266 million, with adjusted diluted EPS of $1.80, reflecting continued operational discipline. The Vacation Ownership segment delivered 6% year-over-year revenue growth to $876 million, supported by a 10% increase in volume per guest, underscoring sustained consumer demand within its core membership base. The company returned $106 million to shareholders through dividends and share repurchases and advanced its multi-brand strategy with the launch of the Eddie Bauer Adventure Club and the announcement of a Sports Illustrated Resort in Chicago. These initiatives broaden brand reach and diversify revenue streams, reinforcing the company’s ability to drive earnings growth and shareholder returns despite a tempered industry backdrop.
Founded in 2006 and headquartered in Orlando, Florida, Travel + Leisure Co. (NYSE:TNL) develops, markets, and manages vacation ownership properties under brands including Club Wyndham, WorldMark by Wyndham, Margaritaville Vacation Club, and Accor Vacation Club. Its asset-light, membership-driven model provides recurring cash flow visibility and leverage to resilient leisure demand trends.
While we acknowledge the potential of TNL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 8 Up and Coming Streaming Companies and Services and 11 Best Canadian Growth Stocks to Buy According to Hedge Funds.
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