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UPDATE: ISI Group Downgrades Strategic Hotels & Resorts

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In a report published Wednesday, ISI Group downgraded its rating on Strategic Hotels & Resorts (NYSE: BEE) from Buy to Neutral, and reiterated its $8.00 price target.

ISI Group noted, “As we noted in our recent '13 outlook, we have found that over the last 20 years, lodging stocks work best when GDP growth is north of 3-4%--outside of that macro backdrop—investors should expect continued trading volatility. Accordingly, we are downgrading Starwood (up 20% over the last 60 days), HST (+23%), LHO (+18%), BEE (+17%) and SHO (+18%) to Neutral from Buy. For those investors that need to stay invested, our top picks are SHO, BEE and LHO. While we have Neutral ratings across our C-Corp coverage universe, the stocks screen nearly 2 multiple turns cheaper than REITs—with a key catalyst for multiple expansion coming from better than expected jobs data (ADR growth will accelerate). More constructive comments from our China economist, Don Straszheim, are also encouraging. That said, near-term headline risk outweighs upside potential.”

Strategic Hotels & Resorts closed on Tuesday at $6.85.

Latest Ratings for BEE

DateFirmActionFromTo
Nov 2014Credit SuisseInitiates Coverage onNeutral
Aug 2014Deutsche BankMaintainsHold
Aug 2014JP MorganMaintainsNeutral

View More Analyst Ratings for BEE
View the Latest Analyst Ratings

Posted-In: ISI GroupAnalyst Color Downgrades Analyst Ratings

 

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