KBW Adjusting Estimates On DiamondRock Hospitality Following Earnings (DRH)

KBW has a Market Perform rating and a $12.50 price target on shares of DiamondRock Hospitality Co. DRH following earnings. In a note to clients, KBW writes, "Following DRH's 1Q11 results and 10-Q filing we are adjusting 2011 and lowering 2012 estimates modestly on higher interest expense. Our estimates do not include impact from likely acquisitions in 2011. Shares trade at 12.7x 2012E EBITDA, a premium to the group at 11.6x. View shares as range-bound near term and maintain Market Perform." Shares of DRH closed at $11.30 yesterday.