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Investing.com - Truist Securities raised its price target on PebbleBrook Hotel Trust (NYSE:PEB) to $11.00 from $9.00 on Thursday, while maintaining a Hold rating on the hotel real estate investment trust. The stock, currently trading at $11.66, sits within a broader analyst target range of $9-$20, according to InvestingPro data.
The firm increased its 2025 Adjusted EBITDAre forecast to $342 million from $328 million previously, and raised its AFFO per share estimate to $1.55 from $1.42.
For 2026, Truist Securities now projects Adjusted EBITDAre of $339 million, up from $329 million, with AFFO per share estimated at $1.46 compared to the previous $1.44 forecast.
The price target increase reflects a 12.5x multiple on the firm’s 2026 EBITDA estimate, representing a 50 basis point increase in the valuation multiple.
Truist Securities attributed the multiple expansion to improved sentiment toward San Francisco real estate and potential market share gains due to underinvestment in capital expenditures and service by other Upper Upscale hotel operators, while noting PEB still faces high leverage and macro headwinds.
In other recent news, Pebblebrook Hotel Trust reported its second-quarter 2025 earnings, showcasing a mixed financial performance. The company posted an earnings per share (EPS) of $0.06, which did not meet the forecasted $0.07. However, Pebblebrook Hotel Trust surpassed revenue expectations, achieving $407.54 million compared to the anticipated $398.34 million. These results highlight a divergence between earnings and revenue performance. The earnings shortfall contrasts with the revenue success, indicating varied operational outcomes. Investors and analysts may find the revenue beat noteworthy, as it suggests strong sales or operational efficiency. The market’s response to these earnings results was cautiously optimistic, as reflected in the slight premarket stock price movement. These developments provide insight into the company’s current financial standing and investor sentiment.
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