Goldman Sachs Downgrades Hyatt Hotels (H) to Neutral; Like Sector, Prefer Buyback/Dividend Stories

Goldman Sachs downgraded Hyatt Hotels (NYSE: H) from Buy to Neutral, price target maintained at $43.00. The firm also removed the stock from its America's Buy list.

Goldman analyst said, "Hyatt is a leader in one of our favorite industries – lodging. However, Marriott (NYSE: MAR), Starwood (NYSE: HOT) and InterContinental (NYSE: IHG) (all Buy) are our preferred names in this compelling sector because not only do we get the benefits of sustained lodging outperformance (low supply, shift to room rate gains from occupancy as business travel remains solid and expenses in check) but they also have compelling capital allocation stories. Hyatt’s potential for buyback or dividend is less clear. Since adding Hyatt to the Buy list on December 15, 2009 shares are up 30% vs. the S&P up 16%."

For an analyst ratings summary and ratings history on Hyatt Hotels click here. For more ratings news on Hyatt Hotels click here.

Shares of Hyatt Hotels closed at $39.19 yesterday.

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