TNL Stock Forecast & Price Target

Travel+Leisure Co. is experiencing a positive outlook driven by a projected increase in gross Vacation Ownership Interest (VOI) sales, estimated between $2.4 billion and $2.5 billion, with a midpoint of $2.45 billion. The company's improvement in sales efficiency, alongside a significant rise in the value per guest (VPG) to a range of $3.2 billion to $3.25 billion, underscores strengthening demand and operational efficiency. Additionally, as net interest spreads widen, profitability is expected to improve, contributing to the company's robust financial performance and investor confidence, as evidenced by a recent 15% increase in stock price.

Travel+Leisure Co. faces a challenging outlook as reduced liquidity from the Federal Reserve has resulted in declining consumer sentiment, which adversely affects vacation ownership interest (VOI) sales. The company anticipates that profitability will struggle over the next couple of years due to narrowing spreads across its portfolios, compounded by foreign currency risks. Additionally, geopolitical factors, including diplomatic relations and potential disruptions from hostilities and terrorism, pose further risks to overall business performance.