Nomura Securities Maintains a 'Neutral' on Starwood Hotels & Resorts (HOT); Lowering Estimates on Weaker European Outlook

Nomura Securities maintains a 'Neutral' on Starwood Hotels & Resorts (NYSE: HOT) price target of $53.00.

Nomura analyst, Harry Curtis, said, "We had estimated 2012 European RevPAR of ~ 5%, but given softening GDP and corporate profit estimates, we are revising that estimate to (5%) for the year. The impact on HOT’s EPS is 2x larger than its peers since HOT derives ~ 12% of EBITDA from Europe vs ~2-5% for Host (NYSE: HST), Marriott (NYSE: MAR) and Hyatt (NYSE: H). The change in Europe translates into 2012-2013 EPS of $2.13 and $2.75, down from our prior estimates of $2.49 and $3.14. Despite our lower estimates, valuation at 10.5x 2012E is more compelling. HOT remains one of the lodging stocks we would consider on weakness."

For an analyst ratings summary and ratings history on Starwood Hotels & Resorts click here. For more ratings news on Starwood Hotels & Resorts click here.

Shares of Starwood Hotels & Resorts closed at $47.63 yesterday.

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