The firm maintained its "buy" rating and $28 price target on the stock.
Shares of La Quinta are dropping 2.85% to $21.50 in afternoon trading Thursday.
Yesterday, La Quinta announced its 2015 second quarter financial results with earnings of 19 cents per share on revenue of $273.89 million. This compares to earnings of 16 cents per share on revenue of $261.81 million for the same period one year ago.
Analysts had estimated for earnings of 19 cents per share on revenue of $276.08 million for the 2015 second quarter.
"We think the surprise announcements regarding the planned sale of 24 noncore, lower EBITDA-producing hotels at accretive multiples and a $200 million share repurchase authorization mean more to the company's future than the transitory issues that impacted second quarter results," Deutsche Bank analysts said.
La Quinta Holdings is an owner, operator and franchisor of select-service hotels primarily serving the midscale and upper-midscale segments under the La Quinta brand.
Separately, TheStreet Ratings team rates LA QUINTA HOLDINGS INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate LA QUINTA HOLDINGS INC (LQ) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been very high debt management risk by most measures.