Jefferies Has Hold On Sunstone Hotel Investors (SHO)

Jefferies & Co. has a Hold rating and a $11 price target on shares of Sunstone Hotel Investors SHO. In a note to clients, Jefferies writes, "On 3/29, after the close, SHO reported preliminary 1Q11 RevPAR results, with 1Q11 RevPAR increasing 5.4% and March RevPAR up 6.2%. More importantly, SHO announced the acquisition of the Hilton San Diego Bayfront and the disposition of the Royal Palm in line with its recent push for acquisitions. We expect SHO to continue growing through acquisitions in 2011 and RevPAR to accelerate to market levels as the portfolio stabilizes. RevPAR. SHO reported preliminary 1Q11 RevPAR of 5.4%, which was slightly below what we were expecting although we highlight significant shifts in the portfolio, which likely impacted our comparable estimates. The company highlighted that March RevPAR was up 6.2%, which suggests January and February were likely impacted by the same issues that other lodging companies have discussed such as bad weather in NYC." Shares of SHO gained 5 cents yesterday to close at $10.21, a gain of 0.5%.