NEW YORK (TheStreet) -- Shares of Diamond Resorts Int'l (DRII) , are up 0.03% to $29.95 in late afternoon trading as the company's rating was downgraded this morning to "neutral" from "buy" with a price target of $32 at SunTrust.
Jim Cramer called the deal "smart" and said travel and leisure is "one of the most heavily shorted groups in the market."
SunTrust is the third firm this week to downgrade the stock to a "neutral" rating, following Goldman and MKM Partners.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate DIAMOND RESORTS INTL as a Hold with a ratings score of C. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, weak operating cash flow and a generally disappointing performance in the stock itself.