UPDATE: Deutsche Bank Reiterates Hold Rating, Lowers PT on DiamondRock Hospitality
In a report published Monday, Deutsche Bank reiterated its Hold rating on DiamondRock Hospitality Company (NYSE: DRH), but slightly lowered its price target from $10.50 to $9.75.
Deutsche Bank noted, “DRH pointed to a more moderate recovery in 4Q than bookings suggested as the primary reason for the reduction to 2012 guidance. Despite solid bookings for 4Q, transient business has not accelerated and ancillary spending by groups has not flowed through to profit as expected. The renovations and hotel transitions add more uncertainty to the outlook. We believe that renovations and a slower pace for the recovery limit upside from current levels. We are lowering our estimates and reducing our price target to $9.75.”
DiamondRock Hospitality Company closed on Friday at $9.06.
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