Pebblebrook Hotel initiated with an Underweight at Barclays

Barclays analyst Richard Hightower initiated coverage of Pebblebrook Hotel (PEB) with an Underweight rating and $10 price target The firm launched coverage of seven hotel real estate investment trusts. The firm believes the hotel REITs will continue to function mainly as a short- term trading sector for many REIT investors, rather than as a potential source of long-term excess returns. Barclays favors companies with “definable business strategies and solid balance sheets.” It views Pebblebrook shares as overvalued at current levels.