The Latest Analyst Ratings For Choice Hotels Intl

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

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $127.4, with a high estimate of $143.00 and a low estimate of $96.00. This current average has decreased by 3.24% from the previous average price target of $131.67.

Analyzing Analyst Ratings: A Detailed 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: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Choice Hotels Intl compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for Choice Hotels Intl's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Choice Hotels Intl's market position. Stay informed and make well-judged decisions with the assistance of 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, 2022, Choice Hotels operated 628,000 rooms across 13 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 added its 13th brand with the launch of extended-stay brand Everhome in January 2020. Choice closed on its Radisson acquisition in August 2022, which will add around 70,000 rooms. Franchises are 99% of total revenue, and the United States represents 79% of total rooms in 2022.

Unraveling the Financial Story of Choice Hotels Intl

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 Growth: Choice Hotels Intl's remarkable performance in 3 months is evident. As of 30 September, 2023, the company achieved an impressive revenue growth rate of 2.73%. This signifies a substantial increase in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Choice Hotels Intl's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 21.51%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Choice Hotels Intl's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 144.05%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 4.18%, the company showcases effective utilization of assets.

Debt Management: Choice Hotels Intl's debt-to-equity ratio is notably higher than the industry average. With a ratio of 20.79, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

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.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

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