Nomura Securities Maintains a 'Neutral' on Choice Hotels (CHH); 6.5% RevPAR Achievable
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Price: $109.25 --0%
Rating Summary:
2 Buy, 19 Hold, 5 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 25
Rating Summary:
2 Buy, 19 Hold, 5 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 25
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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.
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.
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