What Analysts Are Saying About Choice Hotels Intl Stock

Across the recent three months, 4 analysts have shared their insights on Choice Hotels Intl (NYSE:CHH), expressing a variety of opinions spanning from bullish to bearish.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 0 1 0 3 0
Last 30D 0 0 0 1 0
1M Ago 0 1 0 1 0
2M Ago 0 0 0 1 0
3M Ago 0 0 0 0 0

In the assessment of 12-month price targets, analysts unveil insights for Choice Hotels Intl, presenting an average target of $116.75, a high estimate of $138.00, and a low estimate of $96.00. This current average has increased by 1.52% from the previous average price target of $115.00.

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Understanding Analyst Ratings: A Comprehensive Breakdown

The standing of Choice Hotels Intl among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Brandt Montour Barclays Raises Underweight $119.00 $114.00
Brandt Montour Barclays Raises Underweight $114.00 $112.00
Michael Bellisario Baird Maintains Outperform $138.00
David Katz Jefferies Lowers Underperform $96.00 $119.00

Key Insights:

  • Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they ‘Maintain’, ‘Raise’ or ‘Lower’ their stance, it reflects their reaction to recent developments related to Choice Hotels Intl. This information provides a snapshot of how analysts perceive the current state of the company.
  • Rating: Gaining insights, analysts provide qualitative assessments, ranging from ‘Outperform’ to ‘Underperform’. These ratings reflect expectations for the relative performance of Choice Hotels Intl compared to the broader market.
  • Price Targets: Analysts set price targets as an estimate of a stock’s future value. Comparing the current and prior price targets provides insight into how analysts’ expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock’s potential future performance.

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.

All You Need to Know About Choice Hotels Intl

As of Dec. 31, 2022, Choice Hotels operated 628,000 rooms across 13 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 added its 13th brand with the launch of extended-stay Everhome in January 2020. Choice closed on its Radisson acquisition in August 2022, which added around 70,000 rooms. Franchises account for 99% of total revenue, and the United States represent 79% of total rooms in 2022.

Choice Hotels Intl: Financial Performance Dissected

Market Capitalization Analysis: Below industry benchmarks, the company’s market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Choice Hotels Intl displayed positive results in 3 months. As of 30 September, 2023, the company achieved a solid revenue growth rate of approximately 2.73%. This indicates a notable increase in the company’s 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 financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 21.51%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Choice Hotels Intl’s ROE surpasses industry standards, highlighting the company’s exceptional financial performance. With an impressive 144.05% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Choice Hotels Intl’s financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 4.18%, the company showcases efficient use of assets and strong financial health.

Debt Management: Choice Hotels Intl’s debt-to-equity ratio surpasses industry norms, standing at 20.79. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

What Are Analyst Ratings?

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

This article was generated by Benzinga’s automated content engine and reviewed by an editor.

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