Analyst Ari Klein of BMO Capital maintained a Hold rating on Chatham Lodging (CLDT – Research Report), retaining the price target of $9.00.
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Ari Klein’s rating is based on a combination of factors, including Chatham Lodging’s recent financial performance and future outlook. The company’s first-quarter results showed some positive signs, such as a RevPAR growth of 4% which exceeded expectations, and an adjusted FFO that surpassed consensus estimates. However, the EBITDA was in line with projections, indicating no significant outperformance.
Despite these positive aspects, Chatham Lodging lowered its 2025 guidance, with a reduced RevPAR outlook, which suggests potential challenges ahead. Although there was some stabilization in May, the overall outlook remains cautious. Additionally, the announcement of a share repurchase program is a positive step, but more information is needed on capital allocation priorities. These mixed signals contribute to the Hold rating, as the stock may not present a compelling buy opportunity at this time.