Goldman Sachs Downgrades Diamondrock Hospitality (DRH) to Sell, Facing Pressures
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Price: $12.24 -0.57%
Rating Summary:
11 Buy, 15 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 7 | Down: 6 | New: 39
Rating Summary:
11 Buy, 15 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 7 | Down: 6 | New: 39
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Goldman Sachs downgraded Diamondrock Hospitality (NYSE: DRH) from Neutral to Sell with a price target of $7.75 (from $9.50) and lowered 2013 EBITDA by 5%.
"While DiamondRock has a strong balance sheet, high quality hotels, and shares which have been under pressure (down 11% since October 1 vs. down 2% for the S&P), the company faces a combination of exposure in difficult markets, large renovations and a high valuation which we believe will drive share underperformance," the firm comments.
The firm is now 6.4% below consensus for DiamondRock EBITDA and expect minimal margin expansion and only 4.5% RevPAR growth.
For an analyst ratings summary and ratings history on Diamondrock Hospitality click here. For more ratings news on Diamondrock Hospitality click here.
Shares of Diamondrock Hospitality closed at $8.50 yesterday.
"While DiamondRock has a strong balance sheet, high quality hotels, and shares which have been under pressure (down 11% since October 1 vs. down 2% for the S&P), the company faces a combination of exposure in difficult markets, large renovations and a high valuation which we believe will drive share underperformance," the firm comments.
The firm is now 6.4% below consensus for DiamondRock EBITDA and expect minimal margin expansion and only 4.5% RevPAR growth.
For an analyst ratings summary and ratings history on Diamondrock Hospitality click here. For more ratings news on Diamondrock Hospitality click here.
Shares of Diamondrock Hospitality closed at $8.50 yesterday.
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