Analysts at Jefferies initiated coverage on hotel operator
Starwood Hotels & Resorts Worldwide, Inc ( HOT
) on Monday with a "Buy" rating.
The analysts set a price target for the company at $59. The
valuation is a +14.5% upside to Friday's closing price of
Jefferies commented, "We find a lot to like about Starwood. An
asset-light operator, the company has a strong domestic heritage,
but the business is evolving towards faster-growing Emerging
Markets. Starwood comes top on our qualitative Jefferies Scorecard.
The company stands on 10.3x FY13E EV/EBITDA, an 8% discount to
Marriott ( MAR ),
despite its more positive attributes. Our price target offers 17%
Starwood shares were flat in premarket trading on Monday. The
stock is up $3.55, or +7.4%, year-to-date.
The Bottom Line
Shares of Starwood Hotels ( HOT ) have a 2.43%
dividend yield, based on Friday's closing stock price of $51.52.
The stock has technical support in the $46-$48 price area. If the
shares can firm up, we see overhead resistance around the $54-$56
Starwood Hotels & Resorts Worldwide, Inc (
HOT ) is not recommended at this time, holding a
Dividend.com DARS™ Rating of 3.3 out of 5 stars.
Be sure to visit our complete recommended list of the Best Dividend Stocks , as well
as a detailed explanation of our ratings system here .
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