Starwood Hotel Shares Surging ~2% Following CEO Resignation; MLV & Co Says Investors Were Frustrated
Shares of Starwood Hotels & Resorts Worldwide Inc (NYSE: HOT) are rising in Tuesday's pre-market session following the resignation of CEO Frits D. van Paasschen and the appointment of Adam Aron to Interim CEO.
MLV & Co says investors have been growing frustrated with Starwood's slower system expansion and a "murky return of capital story."
MLV expects a positive stock reaction following the news.
"While we believe uncertainty surrounding the longer-term CEO role is modest cause for concern, we also believe having someone like Aron in place makes the transition a bit smoother than otherwise," the firm wrote in a recent note.
Latest Ratings for HOT
|Jul 2016||Canaccord Genuity||Terminates||Hold|
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