Cantor Fitzgerald analyst Gaurav Mehta reiterated a Buy rating on Ashford Hospitality Trust (NYSE: AHT) today and set a price target of $8. The company’s shares opened today at $6.14.
Mehta observed:
“Atlanta Lodging Market: 4Q Group Could be Strong. During 1Q17, RevPAR for the total Atlanta market was up 4.4% vs. 3.4% for the US average. This was largely ADR-driven, up 4.1%, and due to minimal occupancy gains of 30bps (according to STR). The demand increase of 1.6% (y/y) was 30bps above the supply increase. Ashford expects the Atlanta convention calendar to be soft in 3Q, but strong in 4Q (American Society of Hematology annual meeting). The company has 10 hotels in Atlanta that accounted for about 7.3% of hotel EBITDA in 1Q17. In 2016, Ritz Carlton RevPAR rose 3.4% and W RevPAR rose 3.1%, slightly lower than the 3.6% for Atlanta Downtown due to lower group business. Demand drivers for Atlanta Downtown include Centennial Olympic Park, Mercedes-Benz Stadium and the Atlanta Aquarium.”
According to TipRanks.com, Mehta is a 3-star analyst with an average return of 3.2% and a 59.0% success rate. Mehta covers the Financial sector, focusing on stocks such as Summit Hotel Properties, Mid-America Apartment, and Host Hotels & Resorts.
Currently, the analyst consensus on Ashford Hospitality Trust is Strong Buy and the average price target is $7.67, representing a 24.9% upside.
In a report issued on May 4, FBR Capital also reiterated a Buy rating on the stock.
Based on Ashford Hospitality Trust’s latest earnings report for the quarter ending March 31, the company posted quarterly revenue of $353 million and GAAP net loss of $25.72 million. In comparison, last year the company earned revenue of $368 million and had a GAAP net loss of $10.18 million.
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Ashford Hospitality Trust, Inc. is a real estate investment trust, which engages in investing in the hospitality industry. It invests in lodging-related assets, including direct hotel investments, mezzanine financing through origination or acquisition, first-lien mortgage financing through origination or acquisition, sale-leaseback transactions, and other hospitality transactions. The company was founded by Montgomery J. Bennett in May 2003 and is headquartered in Dallas, TX.