Goldman Sachs has revised its stance on Choice Hotels International (CHH, Financial), upgrading the stock from a 'Sell' to a 'Buy' rating. This change comes with a slightly reduced price target, now set at $138, down from the previous $141.
The decision reflects confidence in Choice Hotels’ defensive market position, especially given its franchise-heavy revenue model and robust balance sheet. These attributes make it a resilient player within the lodging sector amidst a backdrop of economic uncertainty. Despite this, the company's shares have seen a 20% decline since early February, mirroring the broader industry trend.
Goldman Sachs acknowledges that its previous 'Sell' rating did not align with the company's performance, as Choice Hotels delivered higher than anticipated EBITDA growth. The updated rating suggests a more optimistic outlook on the company's future performance in a challenging market environment.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 14 analysts, the average target price for Choice Hotels International Inc (CHH, Financial) is $141.30 with a high estimate of $165.00 and a low estimate of $115.20. The average target implies an upside of 13.16% from the current price of $124.87. More detailed estimate data can be found on the Choice Hotels International Inc (CHH) Forecast page.
Based on the consensus recommendation from 15 brokerage firms, Choice Hotels International Inc's (CHH, Financial) average brokerage recommendation is currently 2.9, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Choice Hotels International Inc (CHH, Financial) in one year is $154.32, suggesting a upside of 23.58% from the current price of $124.87. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Choice Hotels International Inc (CHH) Summary page.
