Goldman Sachs Group Inc. Upgrades FelCor Lodging Trust to “Buy” (FCH)
FelCor Lodging Trust (NYSE:FCH) was upgraded by equities research analysts at Goldman Sachs Group Inc. from a “neutral” rating to a “buy” rating in a research note issued to investors on Wednesday, TheFlyOnTheWall.com reports. The firm currently has a $7.25 price objective on the stock, up from their previous price objective of $6.20. Goldman Sachs Group Inc.’s target price would indicate a potential upside of 21.24% from the company’s current price.
The analysts wrote, “We add FelCor to the Buy List as we expect the company to outperform peers on RevPAR growth in 2014. FelCor ranks favorably in our fundamental framework and scores well on metrics relating to supply increase, RevPAR growth trends year to date, and 2014E growth. Current balance sheet metrics for FelCor do not compare very favorably. However, we expect leverage metrics to progressively improve at the company, and see upside for EBITDA and AFFO expectations as well. Our 2014-2015 expectations for AFFO are higher than Street expectations by 13% to 17%. We expect FelCor to reinitiate a common dividend, albeit nominal, as early as 4Q2013. Our target price of $7.25 implies 24% in total returns (including a 1% dividend yield).”
FelCor Lodging Trust (NYSE:FCH) traded up 5.18% on Wednesday, hitting $6.29. The stock had a trading volume of 261,172 shares. FelCor Lodging Trust has a 52 week low of $3.90 and a 52 week high of $6.47. The stock has a 50-day moving average of $5.95 and a 200-day moving average of $5.95. The company’s market cap is $780.7 million.
FelCor Lodging Trust (NYSE:FCH) last released its earnings data on Thursday, August 1st. The company reported $0.21 EPS for the quarter, beating the Thomson Reuters consensus estimate of $0.20 by $0.01. The company had revenue of $249.03 million for the quarter, compared to the consensus estimate of $262.42 million. During the same quarter in the prior year, the company posted $0.18 earnings per share. The company’s quarterly revenue was up 3.3% on a year-over-year basis. Analysts expect that FelCor Lodging Trust will post $0.39 EPS for the current fiscal year.
FelCor Lodging Trust Incorporated is a real estate investment trust (NYSE:FCH).
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