Sequans Communications reports second quarter revenue flat at $8.1 million
On Friday, Citi reduced its price target on Host Hotels & Resorts Inc. (NASDAQ:HST) shares to $19.00 from the previous $21.00. Despite the reduction, the firm retained a Buy rating on the stock. The adjustment comes after Citi analysts reevaluated the company’s financial model to account for the actual fourth quarter and full-year 2024 results, as well as updated operating metrics, Revenue Per Available Room (RevPAR), and interest rate expectations.
The forecast for first quarter 2025 core Funds From Operations (FFO) remains steady at $0.53. However, the estimate for full-year 2025 core FFO has been revised downward to $1.82 from the earlier prediction of $1.98. The new price target reflects an 11 times multiple on the expected 2025 Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA). For context, the company’s current EV/EBITDA multiple stands at 10.03x, with trailing twelve-month EBITDA of $1.54 billion.
Citi’s analysis suggests that Host Hotels & Resorts’ stock has the potential to experience a modest increase in valuation multiples, moving towards longer-term historical averages as opposed to the current multiple, which is below 10 times forward EBITDA. The updated target price is based on this assumption, indicating a degree of confidence in the stock’s future performance despite the lowered earnings forecast.
Host Hotels & Resorts, a lodging real estate company, is known for owning properties in prime locations, including luxury and upper-upscale hotels. The company’s portfolio includes various well-known hotel brands, making it a significant player in the hospitality industry.
Investors and market watchers will be keeping an eye on Host Hotels & Resorts’ stock as it adjusts to the new price target and as the company continues to navigate the post-pandemic recovery of the hospitality sector.
In other recent news, Host Hotels & Resorts Inc. reported fourth-quarter earnings and revenue that exceeded analyst expectations. The company posted adjusted earnings per share of $0.15, surpassing the consensus estimate of $0.13, while revenue reached $1.43 billion, beating expectations of $1.37 billion. Host Hotels also noted a 3.3% year-over-year increase in comparable hotel Total (EPA:TTEF) RevPAR for the fourth quarter, driven by improvements in food and beverage revenues from group business. For the full year 2024, comparable hotel Total RevPAR grew 2.1% to $355.88. The company acquired $1.5 billion in hotel properties and returned $844 million to shareholders through dividends and share repurchases.
In analyst updates, Jefferies adjusted Host Hotels’ price target to $20 from $21 but maintained a Buy rating, citing potential growth fueled by acquisitions and a strong balance sheet. Meanwhile, Citi analysts reiterated a Buy rating with a $21 price target, despite noting challenges such as higher labor costs and slower recovery at certain properties. Citi highlighted the company’s attractive balance sheet and free cash flow, viewing it as a favorable investment opportunity. Both firms acknowledged the company’s strategic initiatives and potential for future expansion.
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