Morgan Stanley has revised its outlook for Choice Hotels (CHH, Financial), reducing the price target for the company's shares from $124 to $115. The decision comes as the firm notes a decline in demand indicators affecting lodging and timeshare sectors. Analyst Stephen Grambling, who leads this assessment, suggests that the challenges in these markets have prompted a recalibration of valuations to align with current market conditions.
The financial institution maintains an "Underweight" stance on Choice Hotels, indicating a cautious approach due to the perceived risks and potential for underperformance relative to the broader market. This adjustment reflects a broader strategy by Morgan Stanley to reevaluate expectations across its coverage of hospitality stocks, given the evolving economic environment and consumer behavior patterns.
