Collins Stewart Maintains a 'Buy' on Diamondrock Hospitality (DRH); Comments on Outlook
More News related to DRH
- DiamondRock Hospitality Announces Tax Treatment of Its 2009 Dividend
- DiamondRock Hospitality Announces Fourth Quarter and Year End 2009 Earnings Release and Conference Call
- DiamondRock Hospitality Company Announces Results of Election for Stockholder Dividend
- Janney Montgomery Scott Reiterates a 'BUY' on DiamondRock Hospitality (DRH); Lowers PT & Estimates
- DiamondRock Hospitality (DRH) Declares $0.33 Dividend; 4.1% Yield
More News related to Analyst Comments
- Morgan Stanley Says Buy Commodities on Recent Dip
- JPMorgan Close to Upgrading UAL, AMR, US Airways; Raises Estimates on UAL Following Traffic Results (UAUA, AMR, LCC, more)
- S&P Revises Credit Outlooks On BofA (BAC) and Citi (C) to Negative, Saying No More Free Govenment Handouts
- S&P Revises Outlook on Citigroup (C) from Stable to Negative
- Wedbush Maintains an 'Outperform' on Electronic Arts (ERTS); Lowers PT & Estimates
Collins Stewart maintains a 'Buy' rating on Diamondrock Hospitality (NYSE: DRH), raises price target to $9.50.
Collins analyst says, "Hotel Acquisition Discussion Becomes Relevant - While it did not come across as a burning priority, management did indicate it is looking for - and is positioned to make - opportunistic hotel acquisitions. DRH has $300MM+ in readily available funds to purchase distressed hotels - more if it levered its 10 unencumbered hotels. As such, and with no guidance from management, we are now modeling the inclusion of two hotel acquisitions in 1H10- assumed purchase price is $135,000/key for like-sized and quality hotels...However, we are also now including the expected 2009 dividend payment (we estimate $0.35) as well as a dividend in 2010 (early estimate of $0.24), to arrive at an expected total return of 20%. The EV/EBITDA and real estate components of our price target methodology remain unchanged at 11x and $235,000 per key, weighted at 50/50."
To see more analyst ratings on DRH Click Here.
Related Categories
Analyst CommentsStocks Mentioned
+0.00Related Entities
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
