Market Overview

UPDATE: JP Morgan Upgrades Strategic Hotels & Resorts to Overweight on Asset Quality

Share:
Related BEE
Pete Najarian Sees Unusual Options Activity In Strategic Hotels and Resorts
Strategic Hotels Worth $16.50 If It Gets Acquired By A Private Equity

JP Morgan raised its rating on Strategic Hotels & Resorts (NYSE: BEE) from Neutral to Overweight and increased its price target from $7 to $9.

JP Morgan commented, "Why are we upgrading now? (1) BEE's assets are located in supply-constrained, high-end markets, which are likely to outperform the industry in a sustained recovery. U.S. operating fundamentals (~88% of TTM EBITDA) remain sound, with group business (~43% of 2011 occupied room nights) a likely driver of more rate-driven RevPAR growth as rates that were booked at weaker points in the cycle expire. (2) A continued increase in high quality urban asset sales should highlight BEE's attractive net asset value, which trades at a 32% discount to transaction cost, the largest discount among the lodging REITs."

Strategic Hotels & Resorts closed at $5.84 on Monday.

Latest Ratings for BEE

DateFirmActionFromTo
Jul 2015Evercore PartnersDowngradesBuyHold
Jul 2015Canaccord GenuityInitiates Coverage onBuy
May 2015Goldman SachsUpgradesMarket PerformOutperform

View More Analyst Ratings for BEE
View the Latest Analyst Ratings

Posted-In: JP MorganAnalyst Color Upgrades Intraday Update Analyst Ratings

 

Related Articles (BEE)

View Comments and Join the Discussion!

Get Benzinga's Newsletters