UPDATE: MKM Partners Upgrades Belmond (BEL) to Neutral

MKM Partners upgraded Belmond (NYSE: BEL) from Sell to Neutral with a price target of $12.00 (from $9.50). The change follows the release of Q2 results. Analyst Christopher Agnew has increased confidence in performance during the second half of the year.

Agnew explained, "2Q was expected to be weak and came in a little weaker than anticipated, but now that the quarter is out of the way and BEL was able to reiterate guidance with a strong outlook in 3Q, we are near-term more constructive: (1) We believe BEL reiterated FY16 guidance due to increased visibility into Brazil (Olympics) and Western Mediterranean (strong international inbound travel) hotels. (2) Western Med. hotels (Spain, Italy and Portugal) were very strong in 2Q and we believe this continues with strong international inbound business and demand shifts from Eastern Med. as countries face ongoing terrorism concerns. We note that airline and car rental companies also reported stronger demand trends in Western Med. (3) The pound devaluation from Brexit is a benefit to BEL’s central overhead costs (pound denominated but reports in USD). (4) A well respected lodging investor, Barry Sternlicht, took a 5% stake (form 13-G filed July 11)."

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

Shares of Belmond closed at $11.41 yesterday.

You May Also Be Interested In

• Fiserv (FISV) PT Lowered to $60 at Freedom Broker
• Solar Industries (SOIL:IN) PT Raised to INR23,500 at ICICI Securities
• Piper Sandler Reiterates Overweight Rating on Estee Lauder (EL), 'F4Q26 Preview'