Nomura Securities Maintains a 'Neutral' on Host Hotels (HST); Cutting Numbers After Quarterly Review
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Price: $22.90 +0.66%
Rating Summary:
17 Buy, 18 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
17 Buy, 18 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities maintains a 'Neutral' on Host Hotels (NYSE: HST) price target lowered from $17 to $16.
Analyst, Harry C. Curtis, said, "HST’s 2012 RevPAR (+4-6%) and EBITDA ($1.09-1.145b) guidance is conservative and, in our view, the high end should be achievable. We are comfortable with our +6.5% RevPAR forecast, which is supported by recent trends.. HST’s 2012 comparable hotel operating margin growth outlook of +25bp to 75bp is lighter than its peers at +120 to 250bp, but it includes a 45bp negative impact from higher property taxes and insurance costs due to the 2011 disasters. HST’s management fees were up only 7% (+$4m) in 4Q, but, owing to the mix of fees, incentive management fees (IMFs) may have been up slightly more. This supports our outlook that MAR’s domestic IMFs should return, but slower than originally expected. Our revenue estimates are relatively unchanged, but we have reduced our EBITDA and FFO estimates given a more conservative margin growth outlook. Our EPS estimates for 2012/2013 are reduced to $1.05/$1.22, respectively, from $1.10/$1.38.
For an analyst ratings summary and ratings history on Host Hotels click here. For more ratings news on Host Hotels click here.
Shares of Host Hotels closed at $16.33 yesterday.
Analyst, Harry C. Curtis, said, "HST’s 2012 RevPAR (+4-6%) and EBITDA ($1.09-1.145b) guidance is conservative and, in our view, the high end should be achievable. We are comfortable with our +6.5% RevPAR forecast, which is supported by recent trends.. HST’s 2012 comparable hotel operating margin growth outlook of +25bp to 75bp is lighter than its peers at +120 to 250bp, but it includes a 45bp negative impact from higher property taxes and insurance costs due to the 2011 disasters. HST’s management fees were up only 7% (+$4m) in 4Q, but, owing to the mix of fees, incentive management fees (IMFs) may have been up slightly more. This supports our outlook that MAR’s domestic IMFs should return, but slower than originally expected. Our revenue estimates are relatively unchanged, but we have reduced our EBITDA and FFO estimates given a more conservative margin growth outlook. Our EPS estimates for 2012/2013 are reduced to $1.05/$1.22, respectively, from $1.10/$1.38.
For an analyst ratings summary and ratings history on Host Hotels click here. For more ratings news on Host Hotels click here.
Shares of Host Hotels closed at $16.33 yesterday.
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