Pebblebrook Hotel upgraded to Buy at Compass Point following underperformance

Compass Point analyst Floris van Dijkum upgraded Pebblebrook Hotel (PEB) to Buy from Neutral with an unchanged price target of $17. The firm is making “a contrarian trading call,” noting that the stock has lagged sector peers meaningfully year-to-date, but should post the second highest adjusted EBITDA growth in 2025, based on the firm’s estimates. The firm, which also notes that its hotel REIT industry coverage completed Q3 reporting with three of the seven names lowering their 2024 guidance, largely due to weather related storms and union strikes, says “tepid” 2024 earnings guidance and poor investor sentiment have hampered hotel REIT performance year-to-date.