Morgan Stanley Upgrades Host Hotels (HST) to Equalweight

Morgan Stanley analyst Stephen W Grambling upgraded Host Hotels (NASDAQ: HST) from Underweight to Equalweight with a price target of $15.00 (from $16.00).

The analyst comments: "Recent performance in the stock has left valuation below peers and at trough levels (ex-pandemic), creating a more balanced risk reward. While the stock's fundamentals are likely to be challenged by deteriorating trends in key markets, HST has already seen greater downward revisions vs. peers. As a result, we now see less downside vs. consensus compared to history – we are 6/5% below 2025/2026 EBITDA whereas we had been 5/8%forward. With valuation compressing on lower consensus estimates, the current enterprise value of $15.9bn is at trough levels over the past 20 years, with the only exception being the depths of the COIVD pandemic when hotels were outright closed. Importantly, HST's lower financial leverage (3.2x vs. peer average of 5.3x) limits downside relative to peers if the environment erodes further. Though, with the company still holding the highest competitive supply within the group, we remain cautious on future RevPAR performance."

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 $14.96 yesterday.

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