UPDATE: Goldman Sachs Raises PT on Host Hotels and Resorts on Updated Estimates Following 4Q12 Results
In a report published Monday, Goldman Sachs reiterated its Neutral rating on Host Hotels and Resorts (NYSE: HST), and raised its price target from $16.50 to $17.50.
Goldman Sachs noted, “Our new FFO per share estimates for 2013 and 2014 are $1.24 and $1.37, changed from $1.26 and $1.45. Our EBITDA 2013-2014 estimates move to $1,284/$1,390 (from $1,262mn/$1,401mn earlier). The slightly lower FFO estimates reflect higher share count. With this update, we introduce FY2015E FFO of $1.48 and EBITDA of $1,469mn. In 2013, we expect Host to make further progress in realigning its secondary market portfolio. With ample liquidity in place, the company is likely to focus on gateway cities and be a net acquirer. Our DCF, EV/EBITDA and P/FFO multiple-based 12-month price target is raised to $17.50 from $16.50 to reflect our new estimates and modestly higher EBITDA (13.5X vs 12.5X earlier) and FFO multiples (11.5X vs 11.25X earlier) to reflect the company's healthy RevPAR trends.”
Host Hotels and Resorts closed on Friday at $16.89.
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