Deutsche Bank Lowers Estimates on Strategic Hotels & Resorts (BEE)

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Deutsche Bank is out with a research report this morning, where it reiterates its Hold rating on Strategic Hotels & Resorts
BEE
; it has a $4.75 price target on the stock. The DB analysts noted that they are lowering estimates on the name, taking down their FY2010 FFO/sh forecast to ($0.19) from ($0.04) on a reduced revPAR and margin forecast. Their FY2010 RevPAR growth forecast is now +5.2% (prior: +6.3%). As for valuation, the DB analysts remarked, “Our price target is based on a blend of an 6% cap rate applied to 2011E NOI (50% of total), 13.5x 2011E EV/EBITDA (35% of total), and a replacement cost estimation (15% of total). Our target multiples and cap rates reflect our view that the improved credit markets and expectations of a recovery in RevPAR and EBITDA could allow BEE to enhance its liquidity within the next 12 months.”
Posted In: Analyst ColorPrice TargetAnalyst RatingsDeutsche BankFinancialsSpecialized REIT's
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