Evaluating Choice Hotels Intl: Insights From 8 Financial Analysts

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8 analysts have shared their evaluations of Choice Hotels Intl CHH during the recent three months, expressing a mix of bullish and bearish perspectives.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 0 2 4 2 0
Last 30D 0 0 1 0 0
1M Ago 0 0 1 0 0
2M Ago 0 1 0 1 0
3M Ago 0 1 2 1 0

Analysts have set 12-month price targets for Choice Hotels Intl, revealing an average target of $133.88, a high estimate of $156.00, and a low estimate of $112.00. This upward trend is evident, with the current average reflecting a 3.88% increase from the previous average price target of $128.88.

Decoding Analyst Ratings: A Detailed Look

A clear picture of Choice Hotels Intl's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Patrick Scholes Truist Securities Lowers Hold $144.00 $146.00
Carlo Santarelli Deutsche Bank Lowers Hold $112.00 $128.00
Michael Bellisario Baird Lowers Outperform $137.00 $140.00
Anthony Powell Barclays Lowers Underweight $114.00 $122.00
Patrick Scholes Truist Securities Raises Hold $146.00 $142.00
Michael Bellisario Baird Raises Outperform $140.00 $138.00
Anthony Powell Barclays Raises Underweight $122.00 $119.00
David Katz Jefferies Raises Hold $156.00 $96.00

Key Insights:

  • Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Choice Hotels Intl. This information provides a snapshot of how analysts perceive the current state of the company.
  • Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Choice Hotels Intl compared to the broader market.
  • Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Choice Hotels Intl's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

To gain a panoramic view of Choice Hotels Intl's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Choice Hotels Intl analyst ratings.

Delving into Choice Hotels Intl's Background

As of Dec. 31, 2023, Choice Hotels operated 633,000 rooms across 15 brands addressing the economy and midscale segments. Comfort Inn and Comfort Suites are the largest brands (27% of the company's total domestic rooms), while Ascend and Cambria (7% of total domestic rooms) are newer lifestyle and select-service brands. Choice closed on its Radisson acquisition in August 2022, which added around 70,000 rooms. Franchises account for 100% of total revenue, and the United States represent 79% of total rooms in 2023.

Breaking Down Choice Hotels Intl's Financial Performance

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Challenges: Choice Hotels Intl's revenue growth over 3 months faced difficulties. As of 31 March, 2024, the company experienced a decline of approximately -0.25%. This indicates a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 9.29%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): Choice Hotels Intl's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 145.78% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 1.27%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: Choice Hotels Intl's debt-to-equity ratio surpasses industry norms, standing at 268.43. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

The Significance of Analyst Ratings Explained

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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