Barclays Maintains an 'Equalweight' on Diamondrock Hospitality (DRH); 3Q11Review: Well Positioned for 2012
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Price: $8.95 --0%
Rating Summary:
9 Buy, 12 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 7 | Down: 6 | New: 2
Rating Summary:
9 Buy, 12 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 7 | Down: 6 | New: 2
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Barclays maintains an 'Equalweight' on Diamondrock Hospitality (NYSE: DRH) price target of $11.00.
Barclays analyst says, "Following the sale of three noncore assets and major renovations at the Frenchman's Reef Marriott (NYSE: MAR), we believe DiamondRock is well positioned for growth in 2012 barring a significant economic slowdown. We are encouraged by the strong forward group booking trends for next year and the increased government per diem rates. This should allow the company to achieve mid single-digit RevPAR growth in 2012, particularly given the low supply growth expected. Our new estimates reflect this view. Despite this positive backdrop, we expect lodging stock performance, including DRH, to be challenging until there is more clarity regarding the US and global economy."
"Our 2011 FFO/sh estimate goes to $0.64 from $0.67 based on RevPAR of +6.5% (up slightly from 6.3%) and adj. EBITDA of $166.5mn (down from $172.3mn). Our
2012 FFO/sh estimate goes to $0.76 from $0.94, driven by our new RevPAR
assumption of +5.7% (down from +8.6%) and asset sales. We also introduce 2013 FFO/sh estimate of $0.90, based on RevPAR growth of 5% and adj. EBITDA of $192.5mn."
For more ratings news on Diamondrock Hospitality click here and for the rating history of Diamondrock Hospitality click here.
Shares of Diamondrock Hospitality closed at $8.09 yesterday.
Barclays analyst says, "Following the sale of three noncore assets and major renovations at the Frenchman's Reef Marriott (NYSE: MAR), we believe DiamondRock is well positioned for growth in 2012 barring a significant economic slowdown. We are encouraged by the strong forward group booking trends for next year and the increased government per diem rates. This should allow the company to achieve mid single-digit RevPAR growth in 2012, particularly given the low supply growth expected. Our new estimates reflect this view. Despite this positive backdrop, we expect lodging stock performance, including DRH, to be challenging until there is more clarity regarding the US and global economy."
"Our 2011 FFO/sh estimate goes to $0.64 from $0.67 based on RevPAR of +6.5% (up slightly from 6.3%) and adj. EBITDA of $166.5mn (down from $172.3mn). Our
2012 FFO/sh estimate goes to $0.76 from $0.94, driven by our new RevPAR
assumption of +5.7% (down from +8.6%) and asset sales. We also introduce 2013 FFO/sh estimate of $0.90, based on RevPAR growth of 5% and adj. EBITDA of $192.5mn."
For more ratings news on Diamondrock Hospitality click here and for the rating history of Diamondrock Hospitality click here.
Shares of Diamondrock Hospitality closed at $8.09 yesterday.
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