Canopy Growth stock tumbles after announcing $200 million share sale plan
On Thursday, Raymond (NSE:RYMD) James upgraded PebbleBrook Hotel Trust (NYSE:PEB) stock from Market Perform to Outperform, setting a price target of $14.00. Currently trading at $11.75, near its 52-week low of $11.47, the stock received the upgrade following its fourth-quarter performance, which surpassed expectations, and a positive revenue per available room (RevPAR) forecast for 2025 that stands out against its competitors. According to InvestingPro, the company has maintained dividend payments for 15 consecutive years, demonstrating consistent shareholder returns despite market fluctuations.
Stifel analysts cited several reasons for the optimistic outlook, including PebbleBrook’s strong fourth-quarter results and the successful redevelopment of its properties. The firm also noted that the company’s EBITDA guidance would have surpassed consensus estimates if not for the one-time impact of the Los Angeles fires.
PebbleBrook’s shares have seen a year-to-date decline of 13.28%, in contrast to the overall real estate investment trust (REIT) sector, which has seen a 4% increase. The current share price reflects a significant discount of over 40% to the company’s net asset value (NAV), a price level not observed since the COVID pandemic. InvestingPro analysis indicates the stock is currently undervalued, with additional metrics and insights available in the comprehensive Pro Research Report, one of 1,400+ detailed company analyses available to subscribers.
The analysts at Raymond James believe that the recent downturn in PebbleBrook’s stock price and its undervalued position present a compelling opportunity for investors. With a market capitalization of $1.42 billion and an overall Financial Health Score rated as "GOOD" by InvestingPro, the firm’s improved fundamental backdrop within the industry and the specific strengths of PebbleBrook’s portfolio were key factors in the decision to upgrade the stock rating and establish the new price target. InvestingPro subscribers have access to 10 additional ProTips and extensive financial metrics for deeper analysis of PEB’s investment potential.
In other recent news, Pebblebrook Hotel Trust has set the executive compensation for 2025, maintaining a structure similar to the previous year. CEO Jon E. Bortz’s base salary is set at $840,000, with a target cash incentive bonus of $1,390,000. CFO Raymond D. Martz and COO Thomas C. Fisher will each receive a base salary of $560,000 and a target cash incentive bonus of $590,000. Their cash bonuses are linked to achieving specific company objectives, including Adjusted FFO per Share and Portfolio RevPAR Penetration Index Improvement. Long-term equity incentive awards will include time-based grants and performance units that vest over three years, contingent on the company’s total shareholder return. Meanwhile, Stifel analysts have maintained a Buy rating on Pebblebrook Hotel Trust, citing the company’s strong presence in the Los Angeles market. Pebblebrook’s Los Angeles properties, which include nine hotels, contributed approximately $41.5 million in annual hotel EBITDA for 2022 and 2023. These properties are expected to benefit from increased demand for short-term lodging, despite the typical slow season in the first quarter.
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