B.Riley FBR Sticks to Its Buy Rating for TravelCenters (TA)

B.Riley FBR analyst Bryan Maher reiterated a Buy rating on TravelCenters (TA) today and set a price target of $12. The company’s shares opened today at $4.73.

Maher noted:

“TravelCenters of America (TA) and Hospitality Properties Trust (HPT) announced Wednesday after the close that they entered into an agreement in which TA would acquire 20 travel centers from HPT for $308.2M. In addition, TA will begin to pay back the $150.0M in deferred rent owed to HPT (from the a discounted amount of $70.5M in 16 equal installments of $4.4M beginning on April 1, 2019. The funds for the travel center acquisitions come from the recent sale of TA’s 225 c-stores for $328.8M. As a result of purchasing these travel centers from HPT, TA’s annual rent due to HPT will be reduced by $43.1M and leverage will be reduced from ~6.8x total debt to adjusted a pro forma basis as of September 30, 2018.”

According to TipRanks.com, Maher is a 1-star analyst with an average return of -2.0% and a 47.7% success rate. Maher covers the Financial sector, focusing on stocks such as Industrial Logistics Properties Trust, Government Properties Income Trust, and Senior Housing Properties Trust.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for TravelCenters with a $10 average price target.

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Based on TravelCenters’ latest earnings release for the quarter ending September 30, the company reported a quarterly GAAP net loss of $11.83 million. In comparison, last year the company had a GAAP net loss of $19.53 million.

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TravelCenters of America LLC engages in the operation and franchise of travel centers and convenience stores. It products and services include diesel fuel and gasoline, truck repair and maintenance services, full service restaurants, quick serve restaurants, travel and convenience stores, and various driver amenities.