In a report released today, RJ Milligan from Raymond James upgraded RLJ Lodging to a Buy, with a price target of $9.00.
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RJ Milligan has given his Buy rating due to a combination of factors including RLJ Lodging’s current undervaluation and the positive outlook for the lodging sector in 2026. RLJ’s shares have underperformed significantly year-to-date, creating a compelling opportunity for investors as the sector’s prospects improve.
Milligan notes that despite short-term challenges such as macroeconomic uncertainty and shorter booking windows, the sector is expected to experience growth in 2026. This growth is anticipated due to factors like major events, a favorable holiday calendar, and reduced labor cost pressures. RLJ’s valuation, trading at a significant discount to its net asset value and replacement cost, further supports the Buy rating, as the stock is positioned to benefit from the sector’s anticipated upswing.
Milligan covers the Real Estate sector, focusing on stocks such as Kite Realty Group, Regency Centers, and RLJ Lodging. According to TipRanks, Milligan has an average return of 7.3% and a 57.64% success rate on recommended stocks.
In another report released on November 7, Oppenheimer also maintained a Buy rating on the stock with a $10.00 price target.