Critical Insights From Choice Hotels Intl Analyst Ratings: What You Need To Know

In the latest quarter, 5 analysts provided ratings for Choice Hotels Intl CHH, showcasing a mix of bullish and bearish perspectives.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

Analysts have recently evaluated Choice Hotels Intl and provided 12-month price targets. The average target is $125.2, accompanied by a high estimate of $144.00 and a low estimate of $112.00. Observing a downward trend, the current average is 2.7% lower than the prior average price target of $128.67.

Understanding Analyst Ratings: A Comprehensive Breakdown

The standing of Choice Hotels Intl among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Choice Hotels Intl. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Choice Hotels Intl compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Choice Hotels Intl's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Choice Hotels Intl's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on Choice Hotels Intl analyst ratings.

All You Need to Know About 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.

Choice Hotels Intl: Financial Performance Dissected

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Challenges: Choice Hotels Intl's revenue growth over 3 months faced difficulties. As of 31 March, 2024, the company experienced a decline of approximately -0.25%. This indicates 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 is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 9.29%, the company may face hurdles in effective cost management.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 145.78%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Choice Hotels Intl's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 1.27%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: Choice Hotels Intl's debt-to-equity ratio stands notably higher than the industry average, reaching 268.43. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Analyst Ratings: Simplified

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.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

This article was generated by Benzinga's automated content engine and reviewed by an editor.