Credit Suisse Upgrading Choice Hotels

Credit Suisse is upgrading shares of Choice Hotels CHH to Neutral and it has a $30 price target on shares. In a note to clients, Credit Suisse writes, "Given that CHH shares have fallen 27% since February versus a 1.5% decline in the S&P 500, we see limited downside and have upgraded to Neutral. We continue to believe that the overall development landscape will remain challenging and domestic hotel construction will remain stagnant. In addition, we see the limited-service category lagging higher-end segments. CHH does have a solid business model, strong balance sheet, and generates ample free cash flow. However, we still do not see any near-term catalysts for CHH and therefore do not view much potential upside in shares." Shares of CHH closed at $28.42 yesterday.