UPDATE: Goldman Sachs Raises PT on FelCor Lodging Trust on Updated Estimates Following 4Q12 Results
In a report published Monday, Goldman Sachs reiterated its Neutral rating on FelCor Lodging Trust (NYSE: FCH), and slightly raised its price target from $5.10 to $5.40.
Goldman Sachs noted, “Our new FFO per share estimates for 2013 and 2014 are $0.45 (no change) and $0.68 (was $0.61). Our 2013-2014 EBITDA estimates move to $205mn/$237mn (from $212mn/$239mn earlier). With this update we introduce FY2015E FFO of $0.88 and EBITDA of $262mn. Felcor has been active in recent months with regards to its balance sheet restructuring actions. While the outlook for 2013 is impacted by renovation activities, we believe the company's asset divestiture actions are gaining traction. We raise our DCF, EV/EBITDA, and P/FFO multiple-based 12-month price target to $5.40 up from $5.10 due to our higher 2014 FFO estimate and a higher EBITDA multiple (11.5X vs 10.25X earlier) to reflect better asset sale clarity.”
FelCor Lodging Trust closed on Friday at $5.21.
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