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UPDATE: Goldman Sachs Downgrades DiamondRock Hospitality to Sell on Underperformance Expectations

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Goldman Sachs reduced its rating on DiamondRock Hospitality (NYSE: DRH) from Neutral to Sell and lowered its price target from $9.50 to $7.75.

Goldman Sachs noted, "We are moving our rating on DiamondRock to Sell from Neutral and lowering our 12-month price target to $7.75 from $9.50 and are lowering our 2013 EBITDA by 5% which is 6% below consensus. Our new price target equates to 8.8% downside and 4.4% total return downside. While DiamondRock has a strong balance sheet and high quality hotels, shares have been under pressure (down 11% since October 1 vs. down 2% for the S&P), and the company faces a combination of exposure in difficult markets, large renovations, and high valuation, which we believe will continue to drive share underperformance."

DiamondRock Hospitality closed at $8.50 on Tuesday.

Latest Ratings for DRH

Jul 2016Deutsche BankMaintainsHold
Mar 2016Stifel NicolausAssumesHold
Mar 2016Credit SuisseMaintainsOutperform

View More Analyst Ratings for DRH
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Posted-In: Goldman SachsAnalyst Color Downgrades Intraday Update Analyst Ratings


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