UPDATE - Nomura Securities Downgrades Choice Hotels (CHH) to Neutral; Valuation Call
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Price: $109.62 +0.34%
Rating Summary:
2 Buy, 19 Hold, 5 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
2 Buy, 19 Hold, 5 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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UPDATE - Nomura Securities downgrades Choice Hotels (NYSE: CHH) from Buy to Neutral. PT raised $2 to $36.
Nomura analyst, Harry Curtis, said, "We like the strength in CHH’s business model, but we are concerned that over the next six months its multiple may not be able to expand more than it has over the last six weeks. CHH has the slowest EPS growth in the group, a contracting new unit pipeline, and minimal net new unit growth. CHH currently trades at 17x our 2012 EPS est. and ~11.5x 2012 EBITDA. CHH’s multiple and stock have recovered 18% since 8/1 (Standard & Poor’s Hotels, Resorts & Cruise Lines Index +3%). Our FY11E EPS goes from $1.81 to $1.84, FY12E from $1.96 to $2.12."
To see more ratings changes on CHH, Click Here
Nomura analyst, Harry Curtis, said, "We like the strength in CHH’s business model, but we are concerned that over the next six months its multiple may not be able to expand more than it has over the last six weeks. CHH has the slowest EPS growth in the group, a contracting new unit pipeline, and minimal net new unit growth. CHH currently trades at 17x our 2012 EPS est. and ~11.5x 2012 EBITDA. CHH’s multiple and stock have recovered 18% since 8/1 (Standard & Poor’s Hotels, Resorts & Cruise Lines Index +3%). Our FY11E EPS goes from $1.81 to $1.84, FY12E from $1.96 to $2.12."
To see more ratings changes on CHH, Click Here
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