MLV & Co Sees Mixed Quarter Report For Summit Hotel Properties

In a report published Monday, MLV & Co analyst Ryan Meliker reiterated a Buy rating and $11.00 price target on

. In the report, MLV & Co noted, “INN reported a mixed quarter as RevPAR exceeded the high-end of guidance, while FFO was at the high-end and in-line with consensus and Adjusted EBITDA missed consensus. Margins were impacted by renovations in the quarter, limiting the upside typically driven by stronger RevPAR growth. As INN invested 50% of its 2014 planned 2014 renovation capital in 1Q, we don't expect that to be an issue going forward. 2014 RevPAR guidance was increased by 50 bps, which is incrementally positive but FFO was unchanged. For 2Q, management is guiding to another quarter of strong RevPAR growth (+5.5 - 7.5%), but FFO guidance is below the Street. "We suspect that is more driven by changing seasonality in the portfolio than anything else, as full-year-guidance is unchanged. Its also possible that management is managing near-term expectations. Regardless, we don't look at that as a negative and focusing on the robust RevPAR growth, we think shares could out-perform on this mixed print.” Summit Hotel Properties closed on Friday at $9.24.