Sector Snap: Some Lodging Price Targets Raised
NEW YORK (AP) ¿ A Goldman Sachs analyst boosted the price targets of some lodging companies Tuesday, citing slowing supply growth and an uptick in demand.
Many lodging operators saw declining demand during the recession as consumers looked to trim costs and held back on booking trips or took shorter vacations. Supply growth also began to wane during the economic downturn, as hotels looked for ways to reduce expenses and avoid oversupply.
Signs of an economic recovery on the horizon bodes well for the industry, according to analyst Steven Kent.
"As we go further out in time we expect increased economic activity to ultimately result in more travel, which will boost occupancy and rate thereafter," he wrote in a client note.Kent increased Marriott International Inc.'s price target to $33 from $27.79 and lifted Starwood Hotels & Resorts Worldwide Inc. to $43 from $35. He raised the price target of Choice Hotels International Inc. to $36 from $32. Among the other price target increases included those for Gaylord Entertainment Co., Orient-Express Hotels Ltd., Interval Leisure Group Inc., Host Hotels & Resorts Inc. and Wyndham Worldwide Corp. Marriott's stock gained 76 cents, or 2.8 percent, to $27.48 in morning trading, while shares of Starwood rose 84 cents, or 2.6 percent, to $32.61. Choice Hotels' stock climbed 71 cents, or 2.53 percent, to $31.48.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV