UPDATE: Deutsche Bank Raises PT to $24 on Chesapeake Lodging on Q4 Results, Equity Offering
Deutsche Bank maintained Chesapeake Lodging (NYSE: CHSP) with a Buy rating and raised the price target from $22.00 to $24.00.
Deutsche Bank noted, "Preliminary 4Q AFFO and EBITDA handily exceeded our estimates. With the proceeds from the equity offering, we expect CHSP to repay debt and purchase additional hotels. We expect target markets for future hotel acquisitions to include Miami, Philadelphia, and New Orleans, as well as CHSP's existing markets. In 2013, we expect CHSP's skew toward transient business travelers and presence in urban West Coast locations to result in RevPAR outperformance and EBITDA growth. We are raising our target to $24."
Chesapeake Lodging closed at $21.49 on Monday.
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