Morgan Stanley analyst Stephen Grambling downgraded Choice Hotels (CHH) to Underweight from Equal Weight with a price target of $129, down from $145. The firm sees downside to consensus estimates based on Choice losing share in development to larger scale peers and underperforming RevPAR on a chain scale weighted basis amid competitive pressures in midscale. Additionally, Choice’s focus on moving upstream is coming at the expense of weaker free cash flow conversion, the analyst tells investors.
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Read More on CHH:
- Choice Hotels price target raised to $152 from $150 at Jefferies
- Choice Hotels price target raised to $129 from $123 at Barclays
- Choice Hotels price target raised to $135 from $122 at JPMorgan
- Choice Hotels price target raised to $138 from $118 at Goldman Sachs
- Choice Hotels initiated with an Underweight at Wells Fargo