Morgan Stanley Reiterates Overweight on Strategic Hotels and Resorts

Morgan Stanley reiterated its Overweight rating on Strategic Hotels and Resorts BEE. In a research report published today, Morgan Stanley reiterated its optimism about the company's long term performance. In the report, Morgan Stanley states, "We continue to rate BEE O/W driven by the following: 1) BEE has one of the best portfolios among lodging REITs with properties that we believe would trade at a premium to the share price implied value, if brought to the open market; 2) BEE is poised for outsized RevPAR growth in 2011 and 2012 through high levels of CBD, resort and group exposure; and 3) As BEE continues to execute on its balance sheet restructuring plan, there are near term catalysts." At the moment, Morgan Stanley has a price target of $8 placed on the company's stock. On Friday, Strategic Hotels closed the week at $6.22.