Wells Fargo lowered the firm’s price target on Service Properties (SVC) to $3 from $4 and keeps an Underweight rating on the shares. The firm says it went to REITworld looking for support of an upgrade but did not find it. While the upcoming sales of 114 assets are expected to be executed unencumbered by management, the retained hotels’ EBITDA decline from 2019 levels and their stabilized margin expectations were disappointing, Wells adds. Should dispositions occur at stronger pricing than expected, the firm recognizes the stock could perform well as a result.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
