Brean Capital reiterates a Buy rating and $21.00 price target on TravelCenters of America (NYSE: TA) following announced sale/leaseback transaction. The transaction will yield $397MM.

Analyst Bryan Maher commented, "TA announced a significant sale/leaseback transaction yielding $397MM. We believe this transaction will mitigate some investor concerns related to TA's growth financing and the significant ownership of real estate on its balance sheet. We have mixed thoughts on this as it was, in our view, good to see TA bulk up on its own as opposed to being overly reliant on HPT (a REIT that spun off TA in 2007), but we also believe real estate ownership in a REIT is more efficient and that TA could be a cash taxpayer in the not-too-distant future if it continues to deliver powerful earnings results. In addition, the realization of a $137MM gain—albeit predominantly deferred, given the timing of the sales to correspond with new acquisitions—should further silence critics of TA's acquisition/renovation/repositioning program."

For an analyst ratings summary and ratings history on TravelCenters of America click here. For more ratings news on TravelCenters of America click here.

Shares of TravelCenters of America closed at $15.76 yesterday.

Analyst Comments

Pre-Open Stock Movers 06/02: (AVEO) (VICL) (TA) Higher; (SOL) (TUBE) (RGLS) Lower (more...)June 2, 2015 9:30 AM Hospitality Properties Trust (HPT) Enters ~$400M Sale, Leaseback Agreement with TravelCenters of America (TA)June 2, 2015 6:28 AM Hospitality Properties Trust Agrees To Purchase And Leaseback 30 Travel Centers For Approximately $397 MillionJune 1, 2015 7:39 PM TravelCenters of America Announces Sale Leaseback Transactions for $397 MillionJune 1, 2015 7:34 PM TravelCenters Of America Holds Customer Appreciation Event at Newly Remodeled Location in London, OhioJune 1, 2015 5:49 PM