DiamondRock Hospitality Rating Increased to Buy at MLV Capital (DRH)
DiamondRock Hospitality (NYSE:DRH) was upgraded by stock analysts at MLV Capital from a “hold” rating to a “buy” rating in a report issued on Friday, TheFlyOnTheWall.com reports. The firm currently has a $13.00 price target on the stock, up from their previous price target of $11.00. MLV Capital’s price target would suggest a potential upside of 19.82% from the company’s current price.
The analysts wrote, “We are upgrading DRH to BUY driven by our view that the company’s operating fundamentals will lead the lodging REIT group through 2014 and margin expansion will provide upside through 2015. With our 2014E EBITDA estimate 4% above consensus and our 2015E EBITDA 11% above consensus, we believe expectations are still low for the company. While our 2013E and 2014E outlooks are largely unchanged, we are incrementally more positive on 2015E than prior. As a result, we are increasing our PT $2 to $13, representing 20% upside from current levels.”
Other equities research analysts have also recently issued reports about the stock. Analysts at FBR & Co. upgraded shares of DiamondRock Hospitality (NYSE:DRH) from a “market perform” rating to an “outperform” rating in a research note to investors on Wednesday, September 11th. Separately, analysts at FBR Capital Markets upgraded shares of DiamondRock Hospitality (NYSE:DRH) from a “market perform” rating to an “outperform” rating in a research note to investors on Wednesday, September 11th. They now have a $12.00 price target on the stock, up previously from $11.00. Finally, analysts at FBR Capital Markets raised their price target on shares of DiamondRock Hospitality (NYSE:DRH) from $10.00 to $11.00 in a research note to investors on Tuesday, August 13th. They now have a “market perform” rating on the stock.
One research analyst has rated the stock with a sell rating, four have assigned a hold rating and five have assigned a buy rating to the company. The company has a consensus rating of “Hold” and an average target price of $10.84.
Shares of DiamondRock Hospitality (NYSE:DRH) traded down 0.83% during mid-day trading on Friday, hitting $10.76. 803,056 shares of the company’s stock traded hands. DiamondRock Hospitality has a 52 week low of $8.11 and a 52 week high of $11.07. The stock’s 50-day moving average is $10.03 and its 200-day moving average is $9.69. The company’s market cap is $2.103 billion.
DiamondRock Hospitality (NYSE:DRH) last posted its quarterly earnings results on Friday, August 9th. The company reported $0.22 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.21 by $0.01. The company had revenue of $221.18 million for the quarter, compared to the consensus estimate of $218.74 million. During the same quarter in the previous year, the company posted $0.20 earnings per share. The company’s revenue for the quarter was up 23.9% on a year-over-year basis. On average, analysts predict that DiamondRock Hospitality will post $0.73 earnings per share for the current fiscal year.
The company also recently declared a quarterly dividend, which is scheduled for Thursday, October 10th. Stockholders of record on Monday, September 30th will be given a dividend of $0.09 per share. This represents a $0.34 dividend on an annualized basis and a yield of 3.13%. The ex-dividend date of this dividend is Thursday, September 26th.
DiamondRock Hospitality Company is a lodging-focused Maryland corporation operating as a real estate investment trust (NYSE:DRH).
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