stifel analysts reiterate buy rating on pebblebrook hotel trust stock

On Thursday, Stifel analysts reaffirmed their positive outlook on Pebblebrook Hotel Trust stock, maintaining a Buy rating. The analysts also kept the price target steady at $9.03 for the company, which is listed on the New York Stock Exchange under the ticker (NYSE:PEB). According to InvestingPro data, the stock trades at an attractive Price/Book ratio of 0.41, suggesting potential undervaluation relative to its assets.

The Stifel team noted that the quarterly performance in the multifamily sector generally met expectations. Their analysis highlighted a positive trend in the San Francisco area, including downtown and the Peninsula, as these markets are gradually recovering from the pandemic’s impact.

The analysts expressed optimism regarding the transaction volumes in the multifamily sector, indicating signs of improvement. This observation comes as the sector continues to navigate the post-pandemic environment.

Pebblebrook Hotel Trust, a prominent player in the hotel and real estate investment trust industry, continues to attract attention from investors and analysts alike. The reaffirmed Buy rating suggests confidence in the company’s future performance.

The maintained price target of $9.03 reflects Stifel’s assessment of the company’s current market position and potential growth prospects within the multifamily sector.

In other recent news, Pebblebrook Hotel Trust reported its first-quarter 2025 earnings, exceeding analysts’ expectations. The company posted an earnings per share (EPS) of -$0.37, surpassing the forecast of -$0.39, and reported revenue of $320.27 million, which was higher than the expected $312.38 million. Pebblebrook also completed a $15 million renovation of the Hyatt Centric in Santa Monica, reflecting its ongoing investment in property upgrades. Despite these positive results, Truist Securities recently lowered its price target for Pebblebrook Hotel Trust stock to $9 from $10, maintaining a Hold rating due to ongoing macroeconomic concerns and city-specific challenges. Truist adjusted its 2025 expected Adjusted EBITDAre to $328 million, down from $342 million, and revised the AFFO per share estimate to $1.42 from $1.50. The firm expressed concerns about Pebblebrook’s high relative leverage amid the current economic environment. However, Pebblebrook remains cautiously optimistic, with projections for a slight increase in room bookings and average daily rates for the rest of the year.

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