UPDATE: MLV & Co Reiterates Buy Rating, Lowers PT on Ashford Hospitality Trust Following Completion of Spin-Off

In a report published Friday, MLV & Co analyst Ryan Meliker reiterated a Buy rating on Ashford Hospitality Trust AHT, but lowered the price target from $14.00 to $13.00. In the report, MLV & Co noted, “We are updating our estimates and price target to account for this week's completed spin-off of Ashford Inc. We continue to see material value in AHT, and while we believe investors may apply a larger discount to AHT than historically, given the new external management structure, we also believe AHT is a levered play on the lodging cycle—a dynamic that should result in outsized FFO growth and equity appreciation. Additionally, unlike other externally managed REITs, with 20% insider ownership, management is highly aligned with shareholders. As such, we reiterate our BUY on AHT but lower our price target by $1, to $13, to account for the AINC spin-off.” Ashford Hospitality Trust closed on Thursday at $10.28.