Morgan Stanley Raises Travel + Leisure Target to $80 as Q3 Income Hits $111M
On January 16 Morgan Stanley raised its price target for Travel + Leisure Co to $80 from $68 while maintaining an Overweight rating, highlighting favorable demographics and a recurring revenue model. In Q3 2025 the company reported net income of $111 million on $1.04 billion revenue, with Vacation Ownership revenue up 6% and $106 million returned to shareholders.
1. Price Target Increase
On January 16 Morgan Stanley raised its price target on Travel + Leisure Co to $80 from $68 while keeping an Overweight rating. The firm cited the company’s older, higher‐income customer demographic and asset‐light recurring revenue model as key drivers of its bullish outlook.
2. Q3 2025 Financial Results
In the third quarter of 2025 Travel + Leisure Co 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 ongoing operational discipline.
3. Vacation Ownership Growth and Shareholder Returns
The Vacation Ownership segment delivered 6% year‐over‐year revenue growth to $876 million, supported by a 10% increase in volume per guest. The company returned $106 million to shareholders through dividends and share repurchases during the quarter.
4. Strategic Initiatives and Outlook
Travel + Leisure advanced its multi-brand strategy with the launch of the Eddie Bauer Adventure Club and announced a Sports Illustrated Resort in Chicago. With interest rate dynamics potentially favoring goods over services, the company’s recurring membership base positions it well against broader discretionary peers.