Market Overview

UPDATE: UBS Upgrades Starwood On 'Favorable' Fundamental Outlook

Related HOT
Nomura Comments On 'Encouraging Conversation' With Starwood's Management
After-Close Market Update: US Stocks Edge Higher; Walter Energy Shares Drop On Downbeat Results
Starwood (HOT) Boosts Mid-Market Brand Portfolio in Europe - Analyst Blog (Zacks)

In a report published Friday, UBS analyst Robin Farley upgraded Starwood Hotels & Resorts Worldwide (NYSE: HOT) from Neutral to Buy and raised the price target from $75.00 to $85.00.

Farley noted that Starwood has a "favorable" fundamental outlook, especially following investor reactions to lack of share buybacks since last quarter. The analyst reported that China's RevPAR is improving up more than 3.5% in the fourth quarter and sees continued strength in North America. UBS added that Starwood has "ample flexibility on balance sheet for buybacks even if asset sales are more weighted toward later in the cycle."

The analyst wrote, "HOT understands investors want to see more share repo, and mgmt reiterated the value they see at these share levels. We believe whatever issues prevented share repo in last quarter will not be an issue after Q4 reporting restrictions are past. On asset sales, HOT's goal of $3B from '13-'16 implies pick up from current levels but mgmt sees transaction pace picking up and private equity back at the table in discussions."

Shares of Starwood Hotels & Resorts closed at $75.36 on Thursday and is currently up 3.04% at $77.65.

Latest Ratings for HOT

Mar 2015RBC CapitalInitiates Coverage onSector Perform
Feb 2015Deutsche BankMaintainsBuy
Feb 2015JMP SecuritiesMaintainsMarket Outperform

View More Analyst Ratings for HOT
View the Latest Analyst Ratings

Posted-In: Robin Farley UBSAnalyst Color Upgrades Price Target Analyst Ratings


Related Articles (HOT)

Around the Web, We're Loving...

Get Benzinga's Newsletters

Benzinga PRO content