Compass Point Updates Model for RLJ Lodging Trust Following Strong 2Q14 Earnings

In a report published Tuesday, Compass Point analyst Wilkes Graham reiterated a Buy rating and $32.50 price target on

. In the report, Compass Point noted, “We reiterate our Buy rating and $32.50 price target. On August 5, RLJ reported strong 2Q14 earnings characterized by a 2 cent headline beat, 2014 guidance increases across the board, and a 36% quarterly dividend boost. Management increased their (1) 2014 EBITDA guidance range to $380M-$400M from $365M-$385M, (2) midpoint of their 2014 RevPAR guidance by 50 bps to 6.0% from 5.5%, and (3) midpoint of their 2014 Hotel EBITDA margin guidance by 20 bps to 35.2% from 35.0%. The Company has closed approximately $553.7M and $128.1M in acquisitions and dispositions YTD (respectively), and management expects to close an additional $100M and $86.5M in acquisitions and dispositions by year end. We've tweaked our estimates after a full model update, and continue to expect the company to trade at a premium to peer multiples due to its strong earnings ‘beat-and-raise' track record and its impressive history of capital deployment.” RLJ Lodging Trust closed on Monday at $29.78.