Morgans Hotel Group Initiated At Buy, Jefferies & Company Reports

According to a new report by Jefferies & Company, Morgans Hotel Group Co.

should be a beneficiary of its positioning in the luxury urban markets where RevPAR should recover the most rapidly. “Leverage has remained a key risk, although we believe the recovery in operations and asset values should improve the risk profile over time,” Jefferies & Company writes. “We initiate coverage on the shares MHGC with a BUY rating and a $10 price target.” Morgans Hotel Group currently trades for $7.59.