UPDATE: Goldman Sachs Starts Host Hotels (HST) at Neutral
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(Updated - September 26, 2016 9:33 AM EDT)
Goldman Sachs initiated coverage on Host Hotels (NYSE: HST) with a Neutral rating and a price target of $15. Analyst Stephen Grambling doesn't see compelling valuation.
"HST ranks in the middle of our coverage group in our stock selection framework, as high capital intensity mutes CROCI and unlevered FCF yield. Furthermore, ramping supply in several of HST’s largest markets combined with high Airbnb exposure warrants caution near term. We expect slowing RevPAR growth to drive EBITDA declines over the next two years but consensus is largely factoring this in. As a result, valuation sits below history, but is not compelling across EV/EBITDA or dividend yield, leaving us Neutral," said Grambling.
Shares of Host Hotels closed at $16.25 yesterday.
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