Nomura Securities Maintains a 'Neutral' on Choice Hotels (CHH); 6.5% RevPAR Achievable

Nomura Securities maintains a 'Neutral' on Choice Hotels (NYSE: CHH) price target of $41.00.

Analyst, Harry Curtis, said, "We’re maintaining our price target and EPS estimates for 2012. We estimate that declining SG&A should add $0.16 to EPS; however, our revised expectations for flat unit growth (indicating a flat to modestly negative room count) and only slightly higher YoY contract signings have offset the potential upside to our estimate. CHH’s RevPAR outlook for 8% growth in 1Q12 and 4-6% growth in 2012 implies decelerating trends. However, we believe management is being cautious due to its lack of visibility and increasingly difficult comps. We remain comfortable with our 6.5% RevPAR outlook. Our price target of $41 is derived by applying a 17x forward EV/EBITDA multiple to our 2H12/1H13 EPS estimate of $2.27."

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

Shares of Choice Hotels closed at $36.88 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Nomura/Instinet Upgrades Genting Singapore (GENS:SP) (GIGNY) to Neutral
• SoundThinking (SSTI) PT Lowered to $8 at Cantor Fitzgerald
• KinderCare Learning Companies (KLC) PT Lowered to $4.50 at UBS