UPDATE: Morgan Stanley Initiates Coverage on Ashford Hospitality Trust on Multiple Risk Factors

In a report published Thursday, Morgan Stanley analyst Thomas Allen initiated coverage on Ashford Hospitality Trust AHT with an Equal-Weight rating and $14.00 price target. In the report, Morgan Stanley noted, “We rate LHO Underweight with a $28 price target, roughly inline with its current stock price. Although LHO has a high quality, urban-centric portfolio, we think several risks present overhangs to 2014 consensus numbers and stock price appreciation, including: 1) Highest exposure to the weak DC market; 2) Slower than expected renovation benefits given lack of brand distribution and significant new supply risk in NY area; and 3) high relative multiple.” Ashford Hospitality Trust closed on Wednesday at $12.19.