Bank Of America Sees Equity Raise Reduce Debt, Provide Dry Powder For Pebblebrook Hotel Trust

In a report published Friday, Bank of America analyst Andrew G. Didora reiterated a Buy rating and $41.00 price target on

. In the report, Bank of America noted, “PEB's recent 3M share (ex-450K greenshoe) equity raise for gross proceeds of $114.5M ($38.15 per share) will be used to repay the $91M outstanding on its revolver and for general corporate purposes.With PEB's debt a bit above its long term goals before the raise, this issuance brings the company in line with its targets and provides some additional liquidity for potential acquisitions. Overall, PEB has been disciplined in deals as the cycle has progressed but has had success in buying in its core West coast markets. Given this discipline and consistent earnings outperformance (13 consecutive earnings beats), we maintain our Buy rating.” Pebblebrook Hotel Trust closed on Thursday at $38.55.