B.Riley FBR Thinks Red Lion Hotels’ Stock is Going to Recover


B.Riley FBR analyst Eric Wold reiterated a Buy rating on Red Lion Hotels (RLH) today and set a price target of $12.50. The company’s shares closed yesterday at $7.73, close to its 52-week low of $6.92.

Wold observed:

“Corporation (RLH) is scheduled to report 1Q19 results before the open on a conference call at 9:00am ET. While we are lowering our 1Q19 revenue and adjusted EBITDA estimates, this is merely to better reflect the seasonal timing of franchise agreements/openings as our annual estimates remain unchanged. With our continued belief that the lull in hotel sales since last July has taken the wind out of RLH’s sails following the doubling in the shares between mid-2017 and mid-2018, we would expect a resumption of hotel sales this summer/fall to drive a solid valuation tailwind into year-end—as well as provide balance sheet ammo for additional accretive acquisitions.”

According to TipRanks.com, Wold has 0 stars on 0-5 star ranking scale with an average return of -4.3% and a 38.4% 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 $12.50.

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The company has a one-year high of $14.75 and a one-year low of $6.92. Currently, Red Lion Hotels has an average volume of 62.85K.

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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.

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