Choice Hotels downgraded to Underweight from Neutral at JPMorgan

JPMorgan downgraded Choice Hotels (CHH) to Underweight from Neutral with an unchanged price target of $120. The analyst views the stock’s valuation versus Wyndham Hotels (WH) as full following the recent rally. This “makes little sense” given Choice’s less net rooms growth versus Wyndham, the analyst tells investors in a research note. Choice’s Q2 sequential quarterly planned development pipeline declined, says JPMorgan, which prefers to own Wyndham for its “superior growth and more appealing valuation prospects.”