Hotel and resort operator Starwood Hotels & Resorts Worldwide, Inc ( HOT ) on Friday caught a big downgrade from analysts at Jefferies & Co.
The firm cut its rating on HOT from "Buy" to "Hold" and slashed its price target from $68 all the way down to $42. That new target suggests a small downside to the stock's Thursday closing price of $43.71.
A Jefferies analyst commented, "We believe HOT is more levered to RevPAR disappointments than either pure play manager/franchisors given its significant owned portfolio of assets (approximately 40% of EBITDA) and thus we have become more cautious on expectations for 2012."
As a result, the analyst also cut its earnings estimates significantly through 2012.
Starwood Hotels shares fell 53 cents, or -1.2%, in early trading Friday.
The Bottom Line
Shares of Starwood Hotels ( HOT ) have a .69% dividend yield, based on last night's closing stock price of $43.71. The stock has technical support in the $37-$41 price area. If the shares can firm up, we see overhead resistance around the $45-$50 price levels.
Starwood Hotels & Resorts Worldwide, Inc ( HOT ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.1 out of 5 stars.
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