Assessing Choice Hotels Intl: Insights From 5 Financial Analysts

Choice Hotels Intl CHH underwent analysis by 5 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

In the assessment of 12-month price targets, analysts unveil insights for Choice Hotels Intl, presenting an average target of $127.6, a high estimate of $144.00, and a low estimate of $112.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 7.54%.

Deciphering Analyst Ratings: An In-Depth Analysis

The perception of Choice Hotels Intl by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction 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.

To gain a panoramic view of Choice Hotels Intl's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Choice Hotels Intl analyst ratings.

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's Economic Impact: An Analysis

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Negative Revenue Trend: Examining Choice Hotels Intl's financials over 3 months reveals challenges. As of 31 March, 2024, the company experienced a decline of approximately -0.25% in revenue growth, reflecting a decrease in 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: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 9.29%, the company may need to address challenges in effective cost control.

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 145.78%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Choice Hotels Intl's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 1.27%, the company may face hurdles in achieving optimal financial performance.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 268.43, caution is advised due to increased financial risk.

The Basics of 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.

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