FBR Capital Upgrades Hersha Hospitality Trust (HT) to Outperform

FBR Capital upgraded Hersha Hospitality Trust (NYSE: HT) from Market Perform to Outperform with a price target of $28.00 (from $26.00).

Analyst Bryan Maher commented, "Hersha Hospitality delivered solid 4Q15 results and an encouraging 2016 outlook. Revenue was in line with estimates, AFFO beat, and adjusted EBITDA missed only slightly. More importantly, management provided a healthy outlook for its 2016 results with comparable RevPAR expected to be up 4% to 6% and adjusted EBITDA expected to be $198 million to $208 million, versus our prior $193 million estimate and consensus of $194 million. Management expects adjusted FFO per share of $2.79–$3.00, versus our previous $2.61 estimate and consensus of $2.39. Granted, we, and likely consensus, will now begin modeling for the announced seven Manhattan hotel asset sale (70/30 JV, likely in 2Q16), which will bring numbers lower, offset by material sale proceeds. But the unadjusted upside to estimates and healthy RevPAR outlook is a very good sign, in our view. As such, we believe the sell-off in Hersha shares is materially overdone, and we are upgrading Hersha to Outperform and raising our price target to $28 (from $26)."

For an analyst ratings summary and ratings history on Hersha Hospitality Trust click here. For more ratings news on Hersha Hospitality Trust click here.

Shares of Hersha Hospitality Trust closed at $19.31 yesterday.

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