What Analysts Are Saying About Sunstone Hotel Invts Stock

During the last three months, 4 analysts shared their evaluations of Sunstone Hotel Invts SHO, revealing diverse outlooks from bullish to bearish.

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 provide deeper insights through their assessments of 12-month price targets, revealing an average target of $10.25, a high estimate of $12.00, and a low estimate of $8.00. Observing a downward trend, the current average is 12.77% lower than the prior average price target of $11.75.

Interpreting Analyst Ratings: A Closer Look

The analysis of recent analyst actions sheds light on the perception of Sunstone Hotel Invts by financial experts. The following summary presents 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 |Lowers |Hold | $8.00|$12.00 | |Patrick Scholes |Truist Securities |Lowers |Hold | $11.00|$12.00 | |Dori Kesten |Wells Fargo |Lowers |Equal-Weight | $12.00|$13.00 | |Stephen Grambling |Morgan Stanley |Maintains |Underweight | $10.00|$10.00 |

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 Sunstone Hotel Invts. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Sunstone Hotel Invts compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for Sunstone Hotel Invts's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Sunstone Hotel Invts's market position. Stay informed and make well-informed decisions with our Ratings Table.

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Get to Know Sunstone Hotel Invts Better

Sunstone Hotel Investors Inc is a real estate investment trust that acquires, owns, manages, and renovates the full-service hotel and select-service hotel properties across various states in the United States. Its firm's portfolio consists upper upscale and luxury hotels located in convention, resort destination and urban markets. Its majority of the hotels operate under a brand owned by Marriott, Hilton, Hyatt, Four Seasons or Montage. It operates geographically in Califiornia which generates the majority of its revenue; Florida; and Hawaii. The company's sole source of income is hotel revenue from its hotel ownership segment.

Sunstone Hotel Invts's Financial Performance

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Sunstone Hotel Invts's revenue growth over a period of 3M has faced challenges. As of 31 December, 2024, the company experienced a revenue decline of approximately -2.03%. This indicates a decrease in the company's top-line earnings. When compared to others in the Real Estate sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Sunstone Hotel Invts's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of -1.47%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of -0.17%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of -0.1%, the company showcases effective utilization of assets.

Debt Management: Sunstone Hotel Invts's debt-to-equity ratio is below the industry average at 0.47, reflecting a lower dependency on debt financing and a more conservative financial approach.

What Are Analyst Ratings?

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and 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.

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