LaSalle Hotel Properties Now Covered by Morgan Stanley (LHO)
Analysts at Morgan Stanley initiated coverage on shares of LaSalle Hotel Properties (NYSE:LHO) in a research report issued to clients and investors on Thursday, AnalystRatingsNetwork.com reports. The firm set an “underweight” rating and a $28.00 price target on the stock. Morgan Stanley’s price target points to a potential upside of 0.61% from the company’s current price.
The analysts wrote, “We Rate SHO Equal-weight with a $14 price target, based on 12.5x ’14e EBITDA and implying 11.1% upside from current levels. Although SHO boasts a portfolio of high quality properties, we believe upside is limited with the stock trading at 11.8x our ’14e EBITDA, slightly above its 5-year average multiple. We believe that SHO is well positioned over the next 12 months as it should realize outsized RevPAR growth at some of its key properties following recently completed renovations. We expect SHO to beat consensus RevPAR expectations in the first half of 2014 given that it i) faces very easy comps (440bps of renovation disruption in 1Q13) and will still have the benefit of the renovation tailwinds, and ii) is favorably positioned in several key urban markets. However, SHO’s 14% DC exposure is a headwind, and we think that growth across the portfolio will be harder to come by in 2H14 and beyond as the new DC convention center opens and the renovation tailwinds subside. We view SHO’s focus on deleveraging its balance sheet favorably and believe growth of its common dividend may begin to attract incremental yield-seeking investors.”
Shares of LaSalle Hotel Properties (NYSE:LHO) traded up 1.72% during mid-day trading on Thursday, hitting $28.31. The stock had a trading volume of 601,804 shares. LaSalle Hotel Properties has a 52-week low of $22.33 and a 52-week high of $30.04. The stock has a 50-day moving average of $28.01 and a 200-day moving average of $26.54. The company has a market cap of $2.725 billion and a price-to-earnings ratio of 39.70.
LaSalle Hotel Properties (NYSE:LHO) last announced its earnings results on Thursday, July 18th. The company reported $0.73 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.72 by $0.01. The company had revenue of $263.60 million for the quarter, compared to the consensus estimate of $259.26 million. During the same quarter in the previous year, the company posted $0.72 earnings per share. The company’s revenue for the quarter was up 8.9% on a year-over-year basis. Analysts expect that LaSalle Hotel Properties will post $2.22 EPS for the current fiscal year.
Several other analysts have also recently commented on the stock. Analysts at BMO Capital Markets downgraded shares of LaSalle Hotel Properties from an “outperform” rating to a “market perform” rating in a research note to investors on Thursday, September 19th. They now have a $28.00 price target on the stock. Separately, analysts at FBR Capital Markets raised their price target on shares of LaSalle Hotel Properties from $31.00 to $33.00 in a research note to investors on Wednesday, September 18th. They now have an “outperform” rating on the stock. Finally, analysts at RBC Capital raised their price target on shares of LaSalle Hotel Properties from $28.00 to $30.00 in a research note to investors on Monday, July 22nd. They now have a “sector perform” rating on the stock. Two analysts have rated the stock with a sell rating, five have given a hold rating and four have given a buy rating to the stock. The company presently has a consensus rating of “Hold” and an average target price of $28.55.
Lasalle Hotel Properties is a self-managed and self-administered real estate investment trust (NYSE:LHO).
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