Sunstone Hotel downgraded to Neutral from Outperform at Baird

Baird analyst Michael Bellisario downgraded Sunstone Hotel (SHO) to Neutral from Outperform with an unchanged price target of $10. The firm adjusted hotel real estate investment trust ratings as part of its 2026 outlook. The analyst views Sunstone as a “show me” story, saying several of its assets ad markets continue to recover. Also, Sunstone’s portfolio has less favorable relative exposures to FIFA World Cup markets, and Baird sees a low likelihood of an acquisition occurring over the near-term, the analyst tells investors in a research note.