Compass Point upgraded Sunstone Hotel to Neutral from Sell with a price target of $12, up from $10. The company’s results came in above our expectations and management raised its 2024 outlook to account for the recent Hyatt Regency San Antonio Riverwalk acquisition, the analyst tells investors in a research note. The firm increased estimates to reflect the deal as well as the expected stabilization of capital projects. Sunstone has a “solid, low leverage” balance sheet with excess liquidity that has been used to repurchase shares and the stock’s valuation appears more reasonable on higher estimates, contends Compass.