UPDATE: Citigroup Upgrades Host Hotels and Resorts to Buy, Reiterates $18 PT

In a report published Friday, Citigroup upgraded its rating on Host Hotels and Resorts

from Neutral to Buy, and reiterated its $18.00 price target. Citigroup noted, “We rate HST shares Buy based on attractive relative and absolute valuation. We see the potential for fundamental outperformance, as group business continues to gain momentum, renovation disruption subsides and recently repositioned assets ramp. Unlike the ‘blue chips' in other REIT sectors, HST is getting no valuation premium for some of the advantages it provides investors – better access/cost of capital, greater share liquidity, a diversified earnings stream, management depth and the ability to compete for large private portfolios that may enter the public domain.” Host Hotels and Resorts closed on Thursday at $15.16.