The firm said it raised its rating on the hotel franchisor as it believes most of the negative SkyTouch Technology news has already been priced in.
SkyTouch is a cloud technology solutions provider in the hotel industry, Choice Hotels invested in the company and in its latest earnings report issued on August 8, the company said it expects reductions in EBITDA from its investment to be approximately $20 million for the 2014 full year.
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he and Stephanie Link think could be potentially HUGE winners. Click here to see the holdings for FREE
Separately, TheStreet Ratings team rates CHOICE HOTELS INTL INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate CHOICE HOTELS INTL INC (CHH) a BUY. This is driven by multiple strengths, 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, expanding profit margins, good cash flow from operations, solid stock price performance and increase in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."