Yesterday, Host Hotels and Resorts reported its 2015 second quarter financial results with earnings of $0.28 per share on revenue of $1.44 billion. This compares to earnings of $0.21 per share on revenue of $1.43 billion for the same period one year ago.
Core second quarter 2015 FFO (funds from operation) per share of $1.30 beat Jefferies's $1.27 versus street estimate of $1.25. However, only $0.02 per share of the beat carries through to full year guidance, according to the analyst note.
"While the stock is cheap, we see no near-term catalyst to drive the stock materially higher from here as the company is likely to continue dealing with drag from renovation displacement," Credit Suisse analysts said.
International overhang and earnings drag from net dispositions are other concerns on the stock, the firm added.
Host Hotels & Resorts, based in Bethesda, MD, operates as a self-managed and self-administered real estate investment trust (REIT).
Shares of Host Hotels & Resorts are declining 0.82% to $19.39 in mid-morning trading Friday.
TheStreet Ratings team rates HOST HOTELS & RESORTS INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate HOST HOTELS & RESORTS INC (HST) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, good cash flow from operations and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income.