B.Riley FBR analyst Eric Wold reiterated a Buy rating on Red Lion Hotels (NYSE: RLH) today and set a price target of $16.25. The company’s shares opened today at $12.85, close to its 52-week high of $13.
Wold observed:
“We are reiterating our Buy rating and $16.25 PT. Analyst certification and important disclosures can be found on pages 3 – 6 of this report. This document represents an abbreviated discussion of the subject issuer and should not be used as the sole basis for an investment decision. Contact your B. Riley FBR representative for complete research concerning the subject issuers, including research briefs and reports.Valuation Within our pro forma valuation analysis, we are shifting our PT from being based on RLH achieving the first stage of the asset-light transformation to a blend of the first two stages (75% stage 1 + 25% stage 2)—as we are increasingly confident in management being able to reinvest the sale proceeds into additional M&A transactions. This drives a PT of $16.25 (up from $14.50), which equates to a multiple of 15.0x our pro forma adjusted EBITDA estimates.”
According to TipRanks.com, Wold is a 5-star analyst with an average return of 8.9% and a 58.9% success rate. Wold covers the Services sector, focusing on stocks such as Reading International Inc, Cinemark Holdings Inc, and National Cinemedia.
Currently, the analyst consensus on Red Lion Hotels is a Moderate Buy with an average price target of $16.25.
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Red Lion Hotels’ market cap is currently $311.2M and has a P/E ratio of 46.67. The company has a Price to Book ratio of 1.88.
Based on the recent corporate insider activity of 50 insiders, corporate insider sentiment is negative on the stock.
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Red Lion Hotels Corp. is a hospitality and leisure company, which engages in franchising, management, and ownership of hotel properties. It operates through the Company Operated Hotel and Franchised Hotels segments. The Company Operated Hotel segment comprises guest room rentals; and food and beverage offerings at owned and leased hotels.
