UPDATE: Loop Capital Assumes Choice Hotels (CHH), Downgrades to Hold

December 2, 2021 7:35 AM EST
Get Alerts CHH Hot Sheet
Price: $141.91 +2.10%

Rating Summary:
    1 Buy, 16 Hold, 5 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 30 | Down: 16 | New: 32
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(Updated - December 2, 2021 7:35 AM EST)

Loop Capital analyst Daniel Adam assumes coverage on Choice Hotels (NYSE: CHH) with a Hold rating (from Buy) and a price target of $147.00.

The analyst comments "Our $147 price target for Choice (CHH) reflects a 20x multiple on our 2022 EBITDA estimate. We believe this multiple, which implies a premium to peers, is appropriate given, 1) potential RevPAR outperformance should customer travel preferences continue to favor leisure/road trips over business/air travel, and 2) our expectation for accelerating RevPAR growth upon recovery. Our target forward EBITDA multiple of 20x for CHH implies a ~5x turn premium to the stock’s average historical pre-COVID multiple. However, given less than 10% upside to our target, we are assuming coverage on CHH with a Hold."

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 $140.07 yesterday.

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