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    Travel + Leisure’s Cheaper Debt and Strong Quarter Might Change The Case For Investing In TNL

    Simply Wall St·12/21/2025 03:23:28
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    • Earlier in December, Travel + Leisure Co. refinanced its 2024 Term Loan B Facility, cutting the interest margin by 50 basis points on US$869 million of borrowings while keeping the December 14, 2029 maturity intact.
    • This lower funding cost, alongside better-than-expected quarterly revenue and operating income and renewed analyst confidence, points to improving financial flexibility for the company.
    • We’ll now examine how the term loan repricing and stronger quarterly performance may influence Travel + Leisure’s longer-term investment narrative.

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    Travel + Leisure Investment Narrative Recap

    To own Travel + Leisure, you need to believe that its largely US-focused vacation ownership model can keep generating recurring cash flows while adapting to shifting travel habits and competition from alternative accommodations. The recent term loan repricing modestly eases interest expense, which supports the near term catalyst of earnings resilience, but does not fully offset the key risk around high leverage and sensitivity to economic and credit cycles.

    The most directly relevant update is Barclays’ upgrade of Travel + Leisure alongside the term loan repricing, reflecting improved sentiment around timeshare trends and the company’s focus on higher margin repeat owner sales. Together, better-than-expected quarterly results and lower borrowing costs provide some support for the near term earnings story, even as the business continues to contend with structural pressures in its Travel and Membership segment.

    Yet investors should also be aware that elevated net debt and the potential for tighter lender appetite could still force less appealing capital decisions if...

    Read the full narrative on Travel + Leisure (it's free!)

    Travel + Leisure’s narrative projects $4.4 billion revenue and $506.9 million earnings by 2028. This requires 3.9% yearly revenue growth and a $110.9 million earnings increase from $396.0 million today.

    Uncover how Travel + Leisure's forecasts yield a $74.92 fair value, a 4% upside to its current price.

    Exploring Other Perspectives

    TNL 1-Year Stock Price Chart
    TNL 1-Year Stock Price Chart

    Four fair value estimates from the Simply Wall St Community span a very wide range, from US$43.13 to over US$61,000 per share, showing how far apart individual views can be. When you set those against concerns about Travel + Leisure’s leverage and exposure to economic cycles, it underlines why it can be useful to compare several independent perspectives before forming your own view.

    Explore 4 other fair value estimates on Travel + Leisure - why the stock might be a potential multi-bagger!

    Build Your Own Travel + Leisure Narrative

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.