UPDATE: Nomura Upgrades Host Hotels & Resorts to Buy, Raises PT on Good Return Potential

In a report published Monday, Nomura analyst Harry C. Curtis upgraded the rating on

from Neutral to Buy, and raised the price target from $21.00 to $22.00. In the report, Nomura noted, “We are upgrading HST to Buy and increasing our target to $22 from $21. Using our 2015E EBITDA, there is potential for the stock to reach $25 in 18 months. Total potential return based on our estimates, including dividend, is of 24% in 12 months and 40% in 18-24 months. As a REIT, HST owns, but does not operate hotels, and as such, has the most operating leverage to the lodging cycle. HST has been upgrading and judiciously adding to its owned portfolio in key gateway markets where it expects the greatest RevPAR upside. Opportunities include: Stronger RevPAR growth; HST's owned margin of ~24% is 400bp below peak in 2007; Increase shareholder returns and REITS in Rising Interest Rate Environments.” Host Hotels & Resorts closed on Friday at $18.07.