NEW YORK (TheStreet) -- La Quinta (LQ) stock is down by 11.94% to $14.53 in early morning trading on Thursday, as firms downgrade the stock this morning following the company's release of its 2015 third quarter financial results on Wednesday.
Credit Suisse (CS) downgraded the stock to "neutral" from "outperform" and lowered its price target to $18 from $20.
The hotel operator faces slowing revenue per available room growth, management uncertainty and concerns about increased competition and capital initiatives, the firm said in a note.
La Quinta is in the process of hiring a permanent CEO, and whoever it chooses should be able to create value from owned real estate and maintain strong franchisee relationships, the firm adds.
The stock was downgraded to "market perform" from "outperform" at Wells Fargo (WFC), and to "underperform" from "neutral" at Bank of America (BAC).
On Wednesday, La Quinta reported earnings of 19 cents per share on revenue of $279 million in the most recent quarter. Analysts had estimated for earnings of 19 cents per share on revenue of $275.19 million.
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. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, generally high debt management risk and weak operating cash flow.
You can view the full analysis from the report here: LQ