Credit Suisse Tweak Estimates on Morgans Hotel Group (MHGC) Following Meeting With New CEO Michael Gross
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Price: $2.15 --0%
Rating Summary:
2 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
2 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Credit Suisse is maintaining its Outperform rating and $11 price target on shares of Morgans Hotel Group (NASDAQ: MHGC) following a number of recent meeting with New CEO Michael Gross.
The firm notes that Mr. Gross appeared versed on the strengths and opportunities of the company, as he once was a member on the Board of Directors. The meeting also included long-time CFO Rich Szymanski. Gross and Szymanski included plans to reinvigorate F&B and nightlife offerings, add management contracts, improve brand positioning, and pursue international expansion.
Credit Suisse is lowering its EPS estimates for 2011 from ($1.62) to (1.65), 2012 from ($1.13) to ($1.17), and for 2013 from ($0.86) to ($0.93).
The firm reports, "We agree with management's strategy to drive non-lodging revenues. Nightlife and restaurants are critical to Morgans' assets and while many of its current amenities are still relevant, they could benefit from new theming, concepts, or third-party operators. Mr. Gross stressed that Europe and Latin America could be ideal international markets for Morgans in the future, but with a preference to stay asset-light and focus on partnership opportunities."
For more ratings news on Morgans Hotel Group click here and for the rating history of Morgans Hotel Group click here.
Shares of Morgans Hotel Group closed at $8.24 yesterday.
The firm notes that Mr. Gross appeared versed on the strengths and opportunities of the company, as he once was a member on the Board of Directors. The meeting also included long-time CFO Rich Szymanski. Gross and Szymanski included plans to reinvigorate F&B and nightlife offerings, add management contracts, improve brand positioning, and pursue international expansion.
Credit Suisse is lowering its EPS estimates for 2011 from ($1.62) to (1.65), 2012 from ($1.13) to ($1.17), and for 2013 from ($0.86) to ($0.93).
The firm reports, "We agree with management's strategy to drive non-lodging revenues. Nightlife and restaurants are critical to Morgans' assets and while many of its current amenities are still relevant, they could benefit from new theming, concepts, or third-party operators. Mr. Gross stressed that Europe and Latin America could be ideal international markets for Morgans in the future, but with a preference to stay asset-light and focus on partnership opportunities."
For more ratings news on Morgans Hotel Group click here and for the rating history of Morgans Hotel Group click here.
Shares of Morgans Hotel Group closed at $8.24 yesterday.
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