UPDATE: Deutsche Bank Cuts PT to $11.25 on Sunstone Hotel Investors on Capex and Oversupply Expectations
Deutsche Bank reiterated its Hold rating on Sunstone Hotel Investors (NYSE: SHO) and reduced its price target from $11.50 to $11.25.
Deutsche Bank noted, "We find Sunstone's 2013 group pace (+8%) encouraging. Given that half of SHO's hotels have more than 400 rooms, we believe entering 2013 with a meaningful book of business may help SHO drive higher rates for short term bookings and transient business during 2013. While room nights on the books are encouraging, we believe that planned renovations and supply growth in New York are likely to create headwinds in 2013. We are reducing our estimates for 4Q 2012 and 2013 and establishing our 2014 estimates."
Sunstone Hotel Investors closed at $11.25 on Tuesday.
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