In a report released on August 8, Stephen Grambling from Morgan Stanley maintained a Hold rating on Diamondrock, with a price target of $9.00.
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Stephen Grambling’s rating is based on DiamondRock Hospitality’s financial performance and strategic positioning. The company’s reported EBITDA for the second quarter of 2025 was in line with expectations, showing slight positive growth in revenue per available room (RevPAR) despite declining EBITDA margins. This indicates a stable performance relative to its real estate investment trust (REIT) peers.
Management’s decision to slightly raise the 2025 EBITDA outlook reflects confidence in the company’s ability to manage costs and maintain revenue growth. However, the overall demand environment remains challenging due to cost inflation. The company’s proactive approach in managing its capital structure and flexibility in investment decisions, such as stock buybacks and acquisitions, supports the Hold rating. The muted market response to the earnings release suggests that the stock’s performance aligns with current market expectations.
According to TipRanks, Grambling is a 4-star analyst with an average return of 6.5% and a 62.57% success rate. Grambling covers the Consumer Cyclical sector, focusing on stocks such as Hyatt Hotels, Las Vegas Sands, and Boyd Gaming.
In another report released on August 8, Stifel Nicolaus also maintained a Hold rating on the stock with a $8.50 price target.