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Chatham Lodging: Hold Rating Amid Strong Q4 Performance and Cautious 2025 Outlook

Chatham Lodging: Hold Rating Amid Strong Q4 Performance and Cautious 2025 Outlook

Analyst Ari Klein of BMO Capital maintained a Hold rating on Chatham Lodging (CLDTResearch Report), with a price target of $10.00.

Ari Klein has given his Hold rating due to a combination of factors impacting Chatham Lodging’s financial outlook. Despite the company’s strong performance in the fourth quarter, with adjusted FFO and EBITDA surpassing expectations, the guidance for 2025 appears less optimistic. The anticipated EBITDA for 2025 is lower than consensus estimates, primarily due to the impact of hotel dispositions, which suggests a cautious outlook.
Moreover, while the revenue figures were in line with expectations and margins showed improvement, the overall guidance implies relatively flat margins for 2025. This cautious outlook, coupled with the need for more clarity on potential acquisition strategies, has led to the Hold rating. Klein’s assessment reflects a balanced view, acknowledging both the positive aspects of recent performance and the uncertainties in future projections.

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Questions or Comments about the article? Write to editor@tipranks.com