UPDATE: Evercore ISI Downgrades Sunstone Hotel Investors (SHO) to Underperform

Evercore ISI analyst Diane Pfenningwerth downgraded Sunstone Hotel Investors (NYSE: SHO) from Outperform to Underperform with a price target of $11.50 (from $13.00).

The analyst comments "...our largest positive revision to 3Q22 EBITDA is on HST (+12%), largest + for FY22 is on DRH (+6%), while PK, PEB move lower by ~3%. For ’23 we’re slightly ahead of consensus on DRH, 7% below on SHO as Street’s 20% EBITDA growth in ’23 strikes us as ambitious. Given discount valuation (-6% discount to group on ’23), the portfolio’s continued outperformance on RevPAR and reasonable expectations, our rating on DRH is upgraded to Outperform from In-line. Conversely, given premium valuation (12% premium to group) and full expectations on ’23, we’re moving to the sidelines on SHO, lowering our rating to In-line from Outperform."

For an analyst ratings summary and ratings history on Sunstone Hotel Investors click here. For more ratings news on Sunstone Hotel Investors click here.

Shares of Sunstone Hotel Investors closed at $10.43 yesterday.

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