Membership Collective initiated with an Equal Weight at Morgan Stanley

Morgan Stanley analyst Stephen Grambling initiated coverage of Membership Collective with an Equal Weight rating and $4.50 price target as he launched coverage on North American lodging. For the group, he believes macro risk is more muted than a typical cycle given that the recovery in travel is still underway, but over the longer-term he generally prefers C-corps over Hotel REITs as "brands" have taken share of independent hotels in almost every market as they leverage scale benefits, partnerships, financing, and still have "ample runway," Grambling tells investors.