Pebblebrook Hotel Trust Receives Low Rating from Brokerages with PT Set at $13.90

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Pebblebrook Hotel Trust ($NYSE:PEB) is a real estate investment trust (REIT) that focuses on the acquisition, ownership, and management of upscale, full-service hotel properties in major U.S. cities. Despite its strong presence in the upscale hotel market, Pebblebrook Hotel Trust has recently received a low rating from several brokerages. These brokerages have assigned a price target of $13.90 for the company’s stock, which is significantly lower than its current trading price. This rating is based on an average of the recommendations given by five firms that currently cover the stock. The travel and tourism sector has been one of the hardest hit by the pandemic, and this has had a significant impact on the hotel industry. With travel restrictions in place and people opting for more cautious travel options, the demand for upscale hotels has decreased, leading to a decline in occupancy rates and revenue for companies like Pebblebrook Hotel Trust. In addition to the challenges posed by the pandemic, there are also concerns about the company’s debt levels. Pebblebrook Hotel Trust has a high level of debt compared to its earnings, which could make it vulnerable in case of any economic downturn or prolonged impact from the pandemic. This may have contributed to the low rating and price target set by these brokerages. It is worth noting that despite the low rating and price target, Pebblebrook Hotel Trust has shown resilience during these challenging times. The company has actively worked on reducing its expenses and improving its liquidity position to weather the storm caused by the pandemic. It has also taken measures to adapt to changing consumer preferences, such as offering more flexible cancellation policies and implementing enhanced health and safety protocols. In conclusion, while the recent low rating and price target set by brokerages may be a cause for concern, investors should also consider Pebblebrook Hotel Trust’s efforts to mitigate the impact of the pandemic and its strong portfolio of upscale hotel properties. As the industry begins to recover, the company could potentially see its stock price improve.

However, it is always important to carefully evaluate the risks and challenges faced by any company before making any investment decisions.

Price History

Pebblebrook Hotel Trust (PEB) received a low rating from several brokerages on Friday, with a consensus price target set at $13.90. The stock opened at $12.77 and closed at $12.65, showing a decrease of 0.32% from its previous closing price of $12.69. The low rating from brokerages reflects a cautious outlook for PEB’s performance in the near future. A low price target suggests that analysts are not expecting significant growth in the stock price. This may be due to various factors such as the current economic climate, industry trends, and the company’s financial health. The company has taken proactive measures to navigate through this difficult time, including implementing cost-cutting measures and focusing on core markets with strong demand.

However, the hotel industry as a whole has been heavily impacted by the pandemic, with travel restrictions and lockdowns leading to a decrease in demand for hotels. This has also affected PEB’s financial performance, as seen in its recent stock performance. It is worth noting that PEB’s low rating and price target may not necessarily reflect the company’s long-term prospects. As the economy begins to recover and travel restrictions ease, there is potential for an increase in demand for hotels. This could lead to an improvement in PEB’s financials and an increase in its stock price. In conclusion, while PEB received a low rating from brokerages with a price target set at $13.90, it is important to consider the current economic climate and industry trends. The company’s proactive measures and potential for recovery in the future could result in a positive outlook for PEB’s stock in the long run. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for PEB. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for PEB. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for PEB. More…

Key Ratios Snapshot

Some of the financial key ratios for PEB are shown below. More…

Analysis

This means that PEBBLEBROOK has a track record of consistently and sustainably paying out dividends. This would make PEBBLEBROOK a valuable investment opportunity for investors looking for a steady source of income through dividends. In terms of its financial health, PEBBLEBROOK HOTEL TRUST is strong in assets and medium in terms of dividend, growth, and debt. However, its profitability is weak. While this may be a concern for some investors, PEBBLEBROOK’s consistent dividend payments suggest that it is still a reliable investment option for those seeking a steady stream of income. PEBBLEBROOK’s low health score of 2/10 indicates that it may struggle to sustain its operations during times of crisis. This is due to its cashflows and debt levels not being strong enough to weather potential financial challenges. As such, investors should be aware of this risk and take it into account when considering investing in PEBBLEBROOK. Overall, PEBBLEBROOK HOTEL TRUST seems to be a suitable investment for investors looking for a company with a history of consistent and sustainable dividends. However, potential investors should also be aware of its weak profitability and low health score. It may be a good fit for those who prioritize steady income over potential growth and are willing to take on some risk in their investment portfolio. More…

Peers

The company’s portfolio consists of over 60 hotels across the United States. Park Hotels & Resorts Inc, Summit Hotel Properties Inc, Braemar Hotels & Resorts Inc are all competitors in the hotel industry.

– Park Hotels & Resorts Inc ($NYSE:PK)

The company’s market cap is $2.75 billion as of 2022. The company owns and operates a portfolio of hotels and resorts in the United States and Canada. The company’s hotels and resorts are located in major metropolitan areas, including New York City, Los Angeles, San Francisco, Boston, Chicago, and Washington, D.C. The company also operates a number of smaller hotels and resorts in select markets, including Palm Springs, Florida, and Maui, Hawaii.

– Summit Hotel Properties Inc ($NYSE:INN)

Summit Hotel Properties, Inc. is a real estate investment trust. The Company owns, acquires, redevelops and repositions premium-branded select-service and extended-stay hotels in the United States. As of December 31, 2016, the Company’s portfolio included 69 hotels with approximately 10,700 guestrooms located in 27 states. The Company operates in the hotel industry segment. The Company’s primary business is to own and acquire premium-branded select-service and extended-stay hotels in the upscale and upper midscale segments of the United States lodging industry.

– Braemar Hotels & Resorts Inc ($NYSE:BHR)

With a market cap of 259.39M as of 2022, Braemar Hotels & Resorts Inc is a company that owns, operates, develops, and invests in hotels and resorts. The company’s portfolio includes properties in North America, Europe, Asia, and Australia.

Summary

Pebblebrook Hotel Trust (PEB) has a current price target of $13.90, set by five different brokerages. The average recommendation for the stock is “Reduce,” suggesting caution in investing. This indicates that analysts believe PEB may not have strong potential for growth in the near future.

Potential investors should consider this information along with their own research and risk tolerance before making a decision on investing in PEB. It is important to note that this is just one aspect of investing analysis and should be considered alongside other factors such as financial performance and industry trends.