In a report released today, Eric Wold from B.Riley FBR reiterated a Buy rating on Red Lion Hotels (RLH), with a price target of $16.25. The company’s shares closed yesterday at $11.39.
Wold observed:
“After the close on Corporation (RLH) reported 3Q18 results that missed our estimates on a consolidated basis (including remaining owned hotel operations ahead of expected sales), but matched our estimate for franchise segment profitability on slightly lower-than-expected franchise segment revenues. Given the likelihood that quarter-to- quarter results will be somewhat messy during the continued asset-light transition, we believe a focus on both the pace of executed franchise agreements as well as the hotel sales process (with four more sales expected in 1H19 with $70M+ of gross proceeds) will lead to a more appropriate valuation framework for RLH shares.”
According to TipRanks.com, Wold is a 5-star analyst with an average return of 8.4% and a 51.6% success rate. Wold covers the Services sector, focusing on stocks such as Reading International Inc, Cinemark Holdings Inc, and National Cinemedia.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Red Lion Hotels with a $16.25 average price target.
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Based on Red Lion Hotels’ latest earnings release for the quarter ending June 30, the company reported a quarterly GAAP net loss of $2.32 million. In comparison, last year the company had a net profit of $2.76 million.
Based on the recent corporate insider activity of 55 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.
