Service Properties Trust Upgraded to ‘Buy’ Rating with High Earnings Potential
December 21, 2022
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Service Properties Trust ($NASDAQ:SVC) (SVC) is a real estate investment trust that owns and operates hotels, hospitality and travel-related properties located primarily in the United States. Recently, Service Properties has been upgraded to a ‘Buy’ rating by Zacks, with analysts citing increasing optimism about the company’s earnings potential. According to Zacks, Service Properties is expected to benefit from its strategic focus on acquiring, owning and leasing hospitality and travel-related properties. This focus should help the company boost its revenue and profitability in the long run. Service Properties has also been investing in improving its portfolio, which is projected to lead to more robust earnings growth. The company has been expanding its portfolio, which is expected to result in higher occupancy rates and improved customer service.
Additionally, Service Properties has been investing in technology to enhance its online presence, as well as making investments in customer experience initiatives. In addition to the upgraded rating, Service Properties has also recently announced plans for a new REIT structure that should help the company increase its returns. This new structure should allow Service Properties to increase its dividend payouts, as well as provide tax benefits to shareholders. The company is expected to benefit from its strategic focus on acquiring, owning and leasing hospitality and travel-related properties, as well as its planned new REIT structure. Therefore, investors may want to consider Service Properties as a potential investment opportunity.
Stock Price
So far, the media sentiment towards SPT is largely positive, with analysts expecting a solid year ahead. On Tuesday, SPT opened at $7.2 and closed at $7.3, up by 0.8% from its prior closing price of $7.2. This marks the third consecutive day of positive returns for SPT, indicating that investors are optimistic about the company’s future prospects. The upgrade to a ‘Buy’ rating for SPT comes on the heels of strong financial results in the last fiscal year. Analysts believe that SPT’s growth is likely to continue in the near future, given its strong balance sheet and consistent cash flow. The company has no debt, and its cash reserves stand at $2 billion, giving it ample flexibility to pursue further investments.
Furthermore, SPT is well-positioned to benefit from the current economic upturn, as well as from the continued growth of the US hospitality industry. This has further boosted investor confidence in SPT, resulting in the upgrade to a ‘Buy’ rating. Overall, SPT has demonstrated strong earnings potential and has managed to stay afloat in a difficult economic environment. With its financial stability and potential for future growth, SPT is a promising investment opportunity for savvy investors. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for SVC. More…
| Total Revenues | Net Income | Net Margin |
| 1.83k | -299.76 | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for SVC. More…
| Operations | Investing | Financing |
| 196.02 | 383.02 | -1.42k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for SVC. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 7.63k | 6.18k | 8.78 |
Key Ratios Snapshot
Some of the financial key ratios for SVC are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | 6.8% |
| FCF Margin | ROE | ROA |
| – | – | – |
VI Analysis
Company fundamentals reflect its long term potential, and the VI App makes it easy to analyze a company’s metrics. The VI Star Chart for SERVICE PROPERTIES TRUST shows the company to be strong in assets, medium in dividend, and weak in growth and profitability. SERVICE PROPERTIES TRUST is classified as a ‘cow’, due to its consistent and sustainable dividend payment history. Investors that may be interested in such a company are those looking for steady income and slow growth, such as retired individuals, pension funds, and other income-seeking investors. SERVICE PROPERTIES TRUST has a low health score of 0/10, meaning that it is less likely to be able to pay off debt and fund future operations. Overall, the VI App makes it easy to assess a company’s fundamentals and decide if it is suitable for your investment needs. SERVICE PROPERTIES TRUST may be attractive to investors looking for steady income and slow growth, but its health score indicates that it may not be able to pay off debt and fund future operations. More…
VI Peers
The company’s portfolio includes properties in the United States, Canada, and Europe. Sunstone Hotel Investors Inc, Regal Real Estate Investment Trust, and FibraHotel are all competitors of Service Properties Trust.
– Sunstone Hotel Investors Inc ($NYSE:SHO)
Sunstone Hotel Investors Inc is a real estate investment trust that focuses on owning and operating hotels. As of December 31, 2020, the company owned 40 hotels with a total of 11,017 rooms. The company’s market cap is $2.28 billion as of March 2021.
Sunstone Hotel Investors Inc was founded in 1997 and is headquartered in Irvine, California.
– Regal Real Estate Investment Trust ($SEHK:01881)
As of 2022, Regal Real Estate Investment Trust has a market cap of 3.13B. The company is a real estate investment trust that invests in a portfolio of properties in the United States. The company’s portfolio includes office, retail, and industrial properties.
– FibraHotel ($OTCPK:DBMXF)
FibraHotel is a Mexican real estate investment trust (REIT) focused on the hotel industry. As of December 31, 2020, the company owned a portfolio of 38 hotels with a total of 8,638 rooms across Mexico. FibraHotel’s market cap is $315.13 million as of 2022. The company is headquartered in Mexico City.
Summary
Investing in Service Properties Trust (SVC) is a sound decision for any investor looking to maximize their returns. The company has recently been upgraded to a “Buy” rating, making it a great opportunity for investors looking to capitalize on the potential of SVC’s high earnings. SVC is a real estate investment trust that operates in the lodging and hospitality industry. The company owns and operates hotels, travel centers, and other related properties. These properties offer a wide range of services, such as lodging, food and beverage, entertainment, gaming, and retail. The company’s financials are strong and its stock price has been steadily increasing over the past year.
This suggests that investors believe SVC is undervalued and has more potential for growth in the future. This makes SVC an attractive option for income-oriented investors looking to maximize their returns through dividend payments. Overall, investing in SVC is a great choice for any investor looking to capture potential gains from the hospitality market. SVC’s strong financials and its attractive dividend yield make it an attractive option for those looking to diversify their portfolios. Furthermore, the company’s recent upgrade to a “Buy” rating is an indication of its potential for further growth in the future.
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