The Analyst Landscape: 3 Takes On Choice Hotels Intl

In the preceding three months, 3 analysts have released ratings for Choice Hotels Intl CHH, presenting a wide array of perspectives from bullish to bearish.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over 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 $120.67, a high estimate of $138.00, and a low estimate of $96.00. Observing a downward trend, the current average is 6.46% lower than the prior average price target of $129.00.

Analyzing Analyst Ratings: A Detailed Breakdown

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.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Choice Hotels Intl. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Choice Hotels Intl compared to the broader market.
• Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Choice Hotels Intl's stock. This comparison reveals trends in analysts' expectations over time.

For valuable insights into Choice Hotels Intl's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Choice Hotels Intl analyst ratings.

Discovering Choice Hotels Intl: A Closer Look

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.

Choice Hotels Intl: A Financial Overview

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: Over the 3 months period, Choice Hotels Intl showcased positive performance, achieving a revenue growth rate of 2.73% as of 30 September, 2023. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Net Margin: Choice Hotels Intl's net margin lags behind industry averages, suggesting challenges in maintaining 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 ROE stands out, surpassing industry averages. With an impressive ROE of 144.05%, the company demonstrates effective use of equity capital and strong financial performance.

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 stands notably higher than the industry average, reaching 20.79. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

How Are Analyst Ratings Determined?

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and 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.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

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