Nomura Securities Maintains a 'Neutral' on Starwood Hotels & Resorts (HOT); Lowering 2012-13 Estimates

Nomura Securities maintains a 'Neutral' on Starwood Hotels & Resorts (NYSE: HOT) price target of $60.00.

Analyst, Harry Curtis, said, "Our concern about the soft economic environment in Europe and related f/x weakness is leading to lower EBITDA/EPS for 2012 and 2013. Core demand trends are stronger than the headline RevPAR number. As we projected in our preview, corporate negotiated rate is running above the 5% consensus, group bookings are strong in the U.S., and RevPAR in Asia and Latin America should be in the high single digits. With net debt now down to ~$1.5b and leverage at 2.5x, HOT has recovered its investment grade rating from Fitch, and it seems likely that other rating agencies will follow. Through 2012, HOT should be able to generate $125m of excess timeshare cash, but it will need to reinvest to maintain segment EBITDA of $150m/year. Our 2012E EPS goes from $2.36 to $2.19 and 2013E from $3.08 to $2.84."

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 $54.22 yesterday.

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