Cycle In Lodging 'Appears To Be Over'; BofA Downgrades 4 Stocks, Lowers Targets On 6

Bank of America's Shaun Kelley issued some concerning comments on the Lodging sector Thursday morning. "The cycle appears to be over," the analyst suggested.

He downgraded and lower priced targets on the following stocks:

  • Hilton Worldwide Holdings Inc HLT - from Buy to Neutral, price target lowered from $26 to $23
  • Hyatt Hotels Corporation H - from Buy to Neutral, PT from $50 to $49
  • Hersha Hospitality Trust HT - from Buy to Neutral, $21 to $18
  • RLJ Lodging Trust RLJ - from Buy to Underperform, $23 to $18

In addition, the analyst lowered price targets on numerous other stocks in the group:

  • Marriott International Inc MAR - Buy rated - $76 to $75
  • Choice Hotels International Inc CHH - Buy - $53 to $50
  • Sunstone Hotels Investors Inc SHO - Buy - $14 to $13.50
  • Extended Stay America Inc STAY - Neutral - $17 to $15
  • Pebblebrook Hotel Trust PEB - Neutral - $29 to $27
  • LaSalle Hotels Properties LHO - Neutral - $26 to $25

Hilton, Hyatt and Hersha were down about 3.5 percent, while the multi-notch downgraded stock, RLJ, was leading the sector lower, trading down about 6.5 percent.

Posted In: Bank of AmericaShaun KelleyAnalyst ColorDowngradesPrice TargetAnalyst RatingsMovers