Strategic Hotels & Resorts Stock Rating Upgraded by Bank of America Corp. (BEE)
Strategic Hotels & Resorts (NYSE:BEE) was upgraded by investment analysts at Bank of America Corp. from an “underperform” rating to a “buy” rating in a note issued to investors on Monday, Analyst Ratings Network reports. The firm currently has a $11.50 price target on the stock, up from their previous price target of $8.00. Bank of America Corp.’s price target suggests a potential upside of 22.99% from the company’s current price.
The analysts wrote, “40% of BEE’s are Four Seasons, Ritz Carlton or Fairmont with nearly all of them in key gateway urban and resort markets that have minimal supply growth,” the report noted. “Luxury RevPAR outperformed the industry by 400bps in the later stages of the prior cycle, and we expect a similar trend could play out this time as businesses increase spending at a time when luxury supply (flat to up modestly) is well below the industry (+1.1%). As a result, we are raising our 2014 RevPAR forecast to +6% from +5%, a 100bps premium to our industry outlook, but we are lowering our EBITDA estimates to account for the Punta Mita sale.”
Separately, analysts at Zacks upgraded shares of Strategic Hotels & Resorts from a “neutral” rating to an “outperform” rating in a research note to investors on Thursday, December 26th. They now have a $10.30 price target on the stock. Four equities research analysts have rated the stock with a hold rating and six have assigned a buy rating to the company’s stock. The company has a consensus rating of “Buy” and an average price target of $9.85.
Shares of Strategic Hotels & Resorts (NYSE:BEE) traded up 0.11% during mid-day trading on Monday, hitting $9.35. 1,477,647 shares of the company’s stock traded hands. Strategic Hotels & Resorts has a one year low of $6.58 and a one year high of $9.69. The stock has a 50-day moving average of $9.13 and a 200-day moving average of $8.81. The company’s market cap is $1.922 billion.
Strategic Hotels & Resorts (NYSE:BEE) last posted its quarterly earnings results on Tuesday, November 12th. The company reported $0.14 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.13 by $0.01. The company had revenue of $237.60 million for the quarter, compared to the consensus estimate of $234.15 million. On average, analysts predict that Strategic Hotels & Resorts will post $0.41 earnings per share for the current fiscal year.
Strategic Hotels & Resorts, Inc (NYSE:BEE) operates as a self-administered and self-managed real estate investment trust (REIT).
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