Trimmed Estimates And Neutral Rating For Orient-Express Hotels (OEH)

In a recent report, JP Morgan Securities Inc. gave a neutral rating to Orient-Express Hotels Ltd

. The analysts lowered their 2010 full-year EBITDA from their previous estimate of $87.2m to $79.8m and from $114.5m to $102.2m for 2011. The firm stated their estimate change was a result of lower earnings from the OEH’s properties in Spain, Italy, South Africa, Peru and a softened U.K. source market. Based on these downward estimate revisions and a lower target multiple, the firm lowered the 2010 year-end price target from to $14 to $9 assuming OEH trades at 13x 2011 EV/EBITDA at year-end, reflecting its asset quality and replacement cost value.