Deutsche Bank Gets Bullish on Lodging Sector (HOT, WYN)

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Analysts at Deutsche Bank on Wednesday issued some positive reports on a number of lodging companies, including a couple of top dividend-payers in the space.

The firm commented, "we favor companies with desirable brands in emerging markets and outsized international growth pipelines."

Continuing, "Our analysis leads us to the conclusion that 2012 may well be a bumpy year for domestic lodging fundamentals. However, given our view that current valuations in the sector reflect a less optimistic outlook for 2012 RevPAR performance than our current forecast, we believe long opportunities exist."

A couple of the firm's favorite picks include:

  • Starwood Hotels & Resorts Worldwide, Inc ( HOT ) - Coverage initiated with a "Buy" rating and $58 price target, suggesting a massive 32% upside to the stock's Tuesday closing price of $44.
  • Wyndham Worldwide Corporation ( WYN ) - Also started with a "Buy" rating and $41 target, implying a 28% upside to WYN's Tuesday close of $31.99.

Both HOT and WYN shares were mostly flat in premarket trading Wednesday.

The Bottom Line
Shares of Starwood Hotels ( HOT ) have a .68% dividend yield, based on last night's closing stock price of $44. The stock has technical support in the $39-$40 price area. If the shares can firm up, we see overhead resistance around the $46-$50 price levels. Shares of Wyndham Hotels ( WYN ) have a 1.88% dividend yield, based on last night's closing stock price of $31.99. The stock has technical support in the $28 price area. If the shares can firm up, we see overhead resistance around the $34-$35 price levels.

Neither of the dividend stocks mentioned in this article have a high enough DARS™ rating to qualify for our "Recommended" list.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Stocks

Referenced Stocks: HOT , WYN

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