In the last three months, 5 analysts have published ratings on Choice Hotels Intl CHH, offering a diverse range of perspectives from bullish to bearish.
The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 0 | 1 | 1 | 3 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 0 | 0 | 0 | 1 | 0 |
| 2M Ago | 0 | 1 | 0 | 1 | 0 |
| 3M Ago | 0 | 0 | 0 | 1 | 0 |
Analysts have set 12-month price targets for Choice Hotels Intl, revealing an average target of $124.6, a high estimate of $156.00, and a low estimate of $96.00. This current average reflects an increase of 13.02% from the previous average price target of $110.25.
Deciphering Analyst Ratings: An In-Depth Analysis
An in-depth analysis of recent analyst actions unveils how financial experts perceive Choice Hotels Intl. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| David Katz | Jefferies | Raises | Hold | $156.00 | $96.00 |
| Brandt Montour | Barclays | Raises | Underweight | $119.00 | $114.00 |
| Brandt Montour | Barclays | Raises | Underweight | $114.00 | $112.00 |
| Michael Bellisario | Baird | Maintains | Outperform | $138.00 | - |
| David Katz | Jefferies | Lowers | Underperform | $96.00 | $119.00 |
Key Insights:
- Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Choice Hotels Intl. This information offers a snapshot of how analysts perceive the current state of the company.
- Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Choice Hotels Intl compared to the broader market.
- Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.
Capture valuable insights into Choice Hotels Intl's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.
Stay up to date on Choice Hotels Intl analyst ratings.
Unveiling the Story Behind Choice Hotels Intl
As of Dec. 31, 2023, Choice Hotels operated 633,000 rooms across 15 brands addressing the economy and midscale segments. Comfort Inn and Comfort Suites are the largest brands (27% of the company's total domestic rooms), while Ascend and Cambria (7% of total domestic rooms) are newer lifestyle and select-service brands. Choice closed on its Radisson acquisition in August 2022, which added around 70,000 rooms. Franchises account for 100% of total revenue, and the United States represent 79% of total rooms in 2023.
Key Indicators: Choice Hotels Intl's Financial Health
Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.
Negative Revenue Trend: Examining Choice Hotels Intl's financials over 3 months reveals challenges. As of 31 December, 2023, the company experienced a decline of approximately -0.99% in revenue growth, reflecting a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Discretionary sector.
Net Margin: Choice Hotels Intl's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 8.04% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): Choice Hotels Intl's ROE stands out, surpassing industry averages. With an impressive ROE of 53.34%, the company demonstrates effective use of equity capital and strong financial performance.
Return on Assets (ROA): Choice Hotels Intl's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.25% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: Choice Hotels Intl's debt-to-equity ratio stands notably higher than the industry average, reaching 47.24. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.
Understanding the Relevance of Analyst Ratings
Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.
Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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