UPDATE: BMO Capital Markets Initiates Hersha Hospitality Trust at Market Perform on Earnings Weakness
BMO Capital Markets initiated coverage on Hersha Hospitality Trust (NYSE: HT) with a Market Perform rating and a $6.00 price target.
BMO Capital Markets commented, "We like the long-term growth prospects of its mostly urban portfolio and its associated higher EBITDA margins. However, weaker-than-expected 3Q12 earnings related to softness in New York City revealed how tied company performance is to that market, which generates 44% of its EBITDA. High supply growth in New York City is expected in 2013/2014 and may add further headwinds to performance. Washington, D.C. (12% EBITDA) also continues to be affected by federal travel spending reductions and it too has high expected supply growth."
Hersha Hospitality Trust closed at $5.17 on Monday.
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