UPDATE: Deutsche Bank Reiterates Buy Rating, Raises PT on Summit Hotel Properties
In a report published Friday, Deutsche Bank reiterated its Buy rating on Summit Hotel Properties (NYSE: INN), and slightly raised its price target from $9.50 to $9.75.
Deutsche Bank noted, “INN Strengthens Balance Sheet with Preferred Equity. INN priced a $67.5mm preferred equity offering at 7.875%. Additionally, INN is negotiating a $52 mm mortgage on the Hyatt portfolio. With the proceeds, INN expects to repay the company's line of credit to zero. The transactions strengthen INN's balance sheet and position INN to close on deals in 1H13. We view INN's shares favorably as the company lowers its cost of capital while continuing to execute acquisitions with cap rates in the 8-10% range. We are raising our PT to $9.75 from $9.50 and adjusting our estimates. Buy.”
Summit Hotel Properties closed on Thursday at $8.75.
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