UPDATE: Bank of America Initiates Coverage on Diamond Resorts International with Neutral Rating, $17 PT on Mixed Factors

In a report published Tuesday, Bank of America analyst Andrew G. Didora initiated coverage on

with a Neutral rating and $17.00 price target. In the report, Bank of America noted, “Diamond Resorts (DRII) is a pure play vacation ownership, or ‘timeshare', company with a $1.2B market cap. Shares began trading publicly in July 2013 after completing a $210M IPO. DRII's capital light business model should benefit from a recovery in timeshare demand and the ability to improve cash flow, but we believe its external management and lack of hotel brand affiliation should result in a valuation discount to peers. As such, we initiate at Neutral with a $17 PO.” Diamond Resorts International closed on Monday at $16.43.