Stephen Grambling, an analyst from Morgan Stanley, maintained the Sell rating on Xenia Hotels & Resorts (XHR – Research Report). The associated price target is $12.00.
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Stephen Grambling has given his Sell rating due to a combination of factors impacting Xenia Hotels & Resorts. The company’s 2025 EBITDA guidance was set below market expectations, which is a concern as it indicates potential challenges in achieving growth targets. Despite reporting a fourth-quarter EBITDA that aligned with consensus estimates, Xenia’s management anticipates cost pressures, particularly in labor, similar to those faced by other lodging REITs. This could hinder the company’s ability to expand its EBITDA as projected.
Additionally, while the Grand Hyatt Scottsdale Resort is expected to contribute positively to growth, the overall outlook remains cautious. The shares are trading at a discount compared to historical averages, but the slight pressure on shares is expected due to the smaller variance between the company’s outlook and market consensus. These elements combined suggest limited upside potential, justifying the Sell rating.
Grambling covers the Consumer Cyclical sector, focusing on stocks such as Hyatt Hotels, DraftKings, and Las Vegas Sands. According to TipRanks, Grambling has an average return of 5.2% and a 61.89% success rate on recommended stocks.