Sunstone Hotel Investors Coverage Initiated by Analysts at Morgan Stanley (SHO)
Equities research analysts at Morgan Stanley assumed coverage on shares of Sunstone Hotel Investors (NYSE:SHO) in a research note issued to investors on Thursday, Stock Ratings News reports. The firm set an “equal weight” rating and a $14.00 price target on the stock. Morgan Stanley’s price objective suggests a potential upside of 12.00% from the stock’s previous close.
The analysts wrote, “We rate AHT Equal-weight with a $14 PT, representing 15.8% upside from current levels. Based on our 2014E sum-of-the-parts analysis, we believe AHT’s stock is worth $14, implying 11.5x ’14e EBITDA. Our analysis assumes that AHP is valued at 12.5x, in-line with peers given its high quality portfolio (2014E RevPAR ~$163 vs. AHT legacy portfolio ~$109), but a discount to DRH/LHO due to its external management structure. We value the remaining AHT portfolio at 11.25x, in line with current levels.”
Sunstone Hotel Investors (NYSE:SHO) traded up 2.80% during mid-day trading on Thursday, hitting $12.85. 271,119 shares of the company’s stock traded hands. Sunstone Hotel Investors has a 1-year low of $9.19 and a 1-year high of $13.94. The stock’s 50-day moving average is $12.74 and its 200-day moving average is $12.48. The company has a market cap of $2.093 billion and a P/E ratio of 27.00.
Sunstone Hotel Investors (NYSE:SHO) last issued its quarterly earnings data on Tuesday, August 6th. The company reported $0.30 EPS for the quarter, meeting the Thomson Reuters consensus estimate of $0.30. The company had revenue of $234.60 million for the quarter, compared to the consensus estimate of $236.18 million. During the same quarter in the prior year, the company posted $0.35 earnings per share. The company’s quarterly revenue was up 10.2% on a year-over-year basis. Analysts expect that Sunstone Hotel Investors will post $0.91 EPS for the current fiscal year.
A number of other firms have also recently commented on SHO. Analysts at ISI Group upgraded shares of Sunstone Hotel Investors from a “buy” rating to a “strong-buy” rating in a research note to investors on Tuesday, September 3rd. Separately, analysts at Zacks downgraded shares of Sunstone Hotel Investors from an “outperform” rating to a “neutral” rating in a research note to investors on Thursday, August 8th. They now have a $14.00 price target on the stock. Finally, analysts at MLV Capital raised their price target on shares of Sunstone Hotel Investors from $13.00 to $14.00 in a research note to investors on Wednesday, August 7th. Four investment analysts have rated the stock with a hold rating, three have given a buy rating and one has given a strong buy rating to the company. Sunstone Hotel Investors has an average rating of “Buy” and an average target price of $13.04.
Sunstone Hotel Investors, Incis a real estate investment trust (NYSE:SHO).
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