UPDATE: MLV & Co Upgrades DiamondRock Hospitality on Improved 2015E Outlook
In a report published Friday, MLV & Co analyst Ryan Meliker upgraded the rating on DiamondRock Hospitality Company (NYSE: DRH) from Hold to Buy, and raised the price target from $11.00 to $13.00.
In the report, MLV & Co noted, “We are upgrading DRH to BUY driven by our view that the company's operating fundamentals will lead the lodging REIT group through 2014 and margin expansion will provide upside through 2015. With our 2014E EBITDA estimate 4% above consensus and our 2015E EBITDA 11% above consensus, we believe expectations are still low for the company. While our 2013E and 2014E outlooks are largely unchanged, we are incrementally more positive on 2015E than prior. As a result, we are increasing our PT $2 to $13, representing 20% upside from current levels.”
DiamondRock Hospitality Company closed on Thursday at $10.85.
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