Choice Hotels, the Consumer Cyclical sector company, was revisited by a Wall Street analyst yesterday. Analyst Daniel Politzer from J.P. Morgan maintained a Sell rating on the stock and has a $124.00 price target.
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Daniel Politzer has given his Sell rating due to a combination of factors impacting Choice Hotels’ performance and outlook. The company’s recent financial results showed a decline in Revenue Per Available Room (RevPAR) by 2.9% year-over-year, which was below expectations. This decline was attributed to reduced government and international travel, softer leisure demand, and broader economic uncertainties.
Additionally, Choice Hotels lowered its full-year RevPAR guidance, indicating a more challenging domestic market environment. Despite maintaining its adjusted EBITDA guidance, the company’s growth prospects appear limited, with net rooms growth expected to be only 1% year-over-year. The valuation of Choice Hotels is considered full, especially when compared to its peers, and its growth outlook is muted. These factors contribute to the decision to maintain a Sell rating, with a price target of $124.
Politzer covers the Consumer Cyclical sector, focusing on stocks such as Boyd Gaming, Hilton Worldwide Holdings, and Caesars Entertainment. According to TipRanks, Politzer has an average return of 9.6% and a 55.34% success rate on recommended stocks.
In another report released today, Barclays also maintained a Sell rating on the stock with a $117.00 price target.