UPDATE: Deutsche Bank Raises PT to $10.50 on Summit Hotel Properties
Deutsche Bank increases its price target on Buy-rated Summit Hotel Properties (NYSE: INN) by $1.50 to $10.50 on the company's robust pipeline, cash flows and growth outlook.
Deutsche Bank says. "While our ratings on Hotel REITs indicate our neutral stance on the sector, we like INN for the company's robust pipeline, cash flow, and growth prospects. INN is executing on small hotel deals with NTM cap rates 200 to even 600 bps higher than where we might expect deals in top 10 markets. INN's deal cap rate spread to its YE11 borrowing cost is 260 to 460 bps. INN's economics and valuation on cash flow make sense to us without overly aggressive long term assumptions."
INN closed at $9.21 a share on Wednesday.
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