NEW YORK (TheStreet) -- Shares of Host Hotels & Resorts (HST - Get Report) closed lower by 3.96% to $16.48 on Wednesday, as the company's stock rating was cut to "underweight" from "neutral" at JPMorgan earlier today.
The firm reduced the Bethesda, MD-based real estate investment trust's price target to $15 from $16.
The downgrade is a result of the stock's outperformance, as well as a drop in revenue per available room (RevPAR), JPMorgan said in a note.
Host Hotels & Resorts outperformed the S&P and its peers materially year-to-date, Benzinga reports.
"Based on recent development pipeline data from STR, we currently expect the top 25 U.S. markets, in the aggregate, to post supply growth of 2.5 percent and 2.3 percent in 2016 and 2017, respectively, which has grown sequentially since late last year," JPMorgan said.
Supply growth, as well as the rising popularity of Airbnb should cut into Host Hotels & Resorts performance, the firm noted.
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 HOST HOTELS & RESORTS INC as a Buy with a ratings score of B-. This is driven by a number of 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 increase in net income, revenue growth, reasonable valuation levels, good cash flow from operations and growth in earnings per share. We feel its strengths outweigh the fact that the company shows low profit margins.
You can view the full analysis from the report here: HSTHST data by YCharts