FBR Capital Upgrades Hospitality Properties Trust (HPT) to Outperform Following Sell-Off
- Donald Trump Sworn in as 45th U.S. President
- Wall Street ends higher as Trump becomes president
- Walgreens Boots Alliance (WBA) Said to Face Antitrust Concern for Rite Aid (RAD) Fix - Bloomberg
- Bristol-Myers Squibb (BMY) Says It Won't Pursue Accelerated U.S. Regulatory Pathway for Opdivo Plus Yervoy in Lung Cancer
- Apple (AAPL) Sues Qualcomm (QCOM) Over Patent Royalties in Antitrust Case - Bloomberg
News and research before you hear about it on CNBC and others. Claim your 2-week free trial to StreetInsider Premium here.
FBR Capital upgraded Hospitality Properties Trust (NASDAQ: HPT) from Market Perform to Outperform with a price target of $33.00 (from $32.00).
Analyst Bryan Maher commented, "HPT continues to outperform its peers with 3Q16 comparable hotel RevPAR up 3.8% versus the industry at 3.3%. In addition, HPT continues to source attractive acquisition targets in a slow transaction market and can use its significant financial resources to close on deals quickly when needed. However, it will also, as we have seen, be a shrewd buyer and will re-trade (lower price) or walk away from a deal when diligence warrants—as we saw in 3Q16. From a capital markets standpoint, the REIT is both patient and opportunistic, as reflected in its $389 million equity offering (at $30.75/share) in 3Q16, after a rally in the shares, with proceeds going to reduce leverage and fund acquisitions. In short, we believe the recent retracement in HPT shares—while still outperforming many of its peers, combined with a secure 7.65% yield—is overdone. Our valuation analysis now yields a $33 price target (from $32) at 4Q17, suggesting a potential total return of over 30%. As such, we are upgrading the shares back to Outperform from Market Perform."
Shares of Hospitality Properties Trust closed at $26.65 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- M&T Bank (MTB) PT Raised to $165 at FBR Capital Following 4Q Beat
- Polaris Industries (PII) PT Raised to $85 at Stifel Ahead of 4Q Report
- Carter's (CRI) PT Lowered to $105 at Oppenheimer; Reiterates Outperform
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change, Upgrades
Related EntitiesDefinitive Agreement, Equity Offerings
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!