Instinet (Nomura) Starts Sunstone Hotel Investors (SHO) at Neutral

Instinet (Nomura) initiates coverage on Sunstone Hotel Investors (NYSE: SHO) with a Neutral rating and a price target of $16.00.

Analyst Brian Dobson commented, "Sunstone's (SHO) portfolio faces dual headwinds from urban supply growth and wage pressure in 2017 and 2018, pressuring top-line and margin growth. While we believe that management has the ability to increase EBITDA in the low-single digits, the stock appears fully valued at current levels, and at ~11.5x 2017E, SHO shares are valued near the high end of valuation ranges seen during periods of low RevPAR growth. In our view, at today's price, there are other lodging equities with greater upside potential. FY16E EBITDA at $326m; FY17E EBITDA at $338m."

For an analyst ratings summary and ratings history on Sunstone Hotel Investors click here. For more ratings news on Sunstone Hotel Investors click here.

Shares of Sunstone Hotel Investors closed at $15.59 yesterday.

You May Also Be Interested In

• Okta, Inc (OKTA) PT Raised to $235 at DA Davidson Following Oktane 2026
• NICE Systems Ltd (NICE) PT Raised to $145 at RBC Capital
• Arthur J. Gallagher (AJG) PT Lowered to $250 at Keefe, Bruyette & Woods