In a report released today, Ari Klein from BMO Capital maintained a Buy rating on Apple Hospitality REIT (APLE – Research Report), with a price target of $18.00.
Ari Klein’s rating is based on a combination of factors that highlight both the strengths and potential of Apple Hospitality REIT. Despite the company’s 2025 EBITDA outlook falling short of expectations, Klein acknowledges the defensive characteristics of APLE, which could be advantageous if the revenue per available room (RevPAR) environment improves. The company boasts leading margins, a robust balance sheet, and an appealing dividend yield of 6.6%, all of which contribute to its attractiveness as an investment.
Furthermore, APLE’s performance in the fourth quarter demonstrated resilience, with modified funds from operations surpassing expectations due to reduced hotel operating expenses and interest costs. Revenue and EBITDA figures also exceeded consensus estimates, and hotel EBITDA margins were notably higher than anticipated. These positive financial indicators, alongside the company’s strategic positioning, underpin Klein’s Buy rating for Apple Hospitality REIT.
Klein covers the Real Estate sector, focusing on stocks such as SBA Communications, Ryman, and Park Hotels & Resorts. According to TipRanks, Klein has an average return of 4.9% and a 56.45% success rate on recommended stocks.