Morgan Stanley Overweight on Ashford Hospitality Trust

Morgan Stanley is out with a research report on Ashford Hospitality Trust AHT and it has an Overweight rating on shares. In a note to clients, Morgan Stanley writes, "We believe the share price will rise in absolute terms over the next 45 days. There is an overhang on the stock driven by looming near-term debt maturities. We expect the maturity for December 15, 2011 to be resolved in coming weeks , which should provide a positive catalyst for the stock. AHT has almost $200mm in cash and an undrawn $150mm revolving credit facility available to pay down the debt, if required by the special servicer. Similar to past hotel loan maturities we expect this to be resolved in the best interests of both parties. We estimate that there is about a 70% to 80% or "very likely" probability for the scenario." Shares of AHT gained 2 cents yesterday to close at $7.27.