Breaking Down Choice Hotels Intl: 5 Analysts Share Their Views
Providing a diverse range of perspectives from bullish to bearish, 5 analysts have published ratings on Choice Hotels Intl (NYSE:CHH) in the last three months.
The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 0 | 1 | 3 | 1 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 0 | 0 | 1 | 0 | 0 |
| 2M Ago | 0 | 1 | 1 | 0 | 0 |
| 3M Ago | 0 | 0 | 0 | 1 | 0 |
Analysts have set 12-month price targets for Choice Hotels Intl, revealing an average target of $126.4, a high estimate of $144.00, and a low estimate of $112.00. A 5.67% drop is evident in the current average compared to the previous average price target of $134.00.
Analyzing Analyst Ratings: A Detailed Breakdown
A comprehensive examination of how financial experts perceive Choice Hotels Intl is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Christopher Stathoulopoulos | Susquehanna | Announces | Neutral | $125.00 | - |
| Patrick Scholes | Truist Securities | Lowers | Hold | $144.00 | $146.00 |
| Carlo Santarelli | Deutsche Bank | Lowers | Hold | $112.00 | $128.00 |
| Michael Bellisario | Baird | Lowers | Outperform | $137.00 | $140.00 |
| Anthony Powell | Barclays | Lowers | Underweight | $114.00 | $122.00 |
Key Insights:
- Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Choice Hotels Intl. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Choice Hotels Intl compared to the broader market.
- Price Targets: Understanding forecasts, analysts offer estimates for Choice Hotels Intl's future value. Examining the current and prior targets provides insight into analysts' changing expectations.
For valuable insights into Choice Hotels Intl's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.
Stay up to date on Choice Hotels Intl analyst ratings.
Unveiling the Story Behind 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: Delving into Financials
Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.
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 its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Discretionary sector.
Net Margin: Choice Hotels Intl's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 9.29%, the company may encounter 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 is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 1.27%, the company may encounter challenges in delivering satisfactory returns from its assets.
Debt Management: With a high debt-to-equity ratio of 268.43, Choice Hotels Intl faces challenges in effectively managing its debt levels, indicating potential financial strain.
Analyst Ratings: What Are They?
Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.
Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.
This article was generated by Benzinga's automated content engine and reviewed by an editor.