UPDATE: Jefferies Downgrades Starwood Hotels & Resorts to Hold on Valuation

Jefferies downgraded Starwood Hotels & Resorts HOT from Buy to Hold and raised the price target from $59.00 to $66.00. Jefferies commented, "We continue to like what management is doing with respect to expansion into faster growing emerging markets, becoming even more asset light and promising to return more capital. … With its 2012 results HOT tightened its 2013 RevPAR growth range slightly to 5-7%, reiterated its commitments to sell more assets and to return more cash to shareholders. Having underperformed its peer group for most of 2012, we think a 25% share price rise in the last two months largely reflects these factors. In the absence of material upgrades, we lower our recommendation to Hold." Starwood Hotels & Resorts closed at $62.26 on Tuesday.