Analysts Offer Insights on Financial Companies: Capitala Finance (NASDAQ: CPTA), Host Hotels & Resorts (NYSE: HST) and Principal Financial (NYSE: PFG)

By Carrie Williams

Companies in the Financial sector have received a lot of coverage today as analysts weigh in on Capitala Finance (NASDAQ: CPTA), Host Hotels & Resorts (NYSE: HST) and Principal Financial (NYSE: PFG).

Capitala Finance (NASDAQ: CPTA)

In a report released today, Mark Devries from Barclays reiterated a Buy rating on Capitala Finance (NASDAQ: CPTA), with a price target of $14. The company’s shares opened today at $11.95.

According to TipRanks.com, Devries is a 1-star analyst with an average return of -3.9% and a 63.2% success rate. Devries covers the Financial sector, focusing on stocks such as Discover Financial Services, Fidelity National Financial, and Arlington Asset Investment.

Currently, the analyst consensus on Capitala Finance is Moderate Buy and the average price target is $16.65, representing a 39.3% upside.

In a report issued on November 9, Jefferies also reiterated a Buy rating on the stock with a $17 price target.
Host Hotels & Resorts (NYSE: HST)

In a report released yesterday, Gaurav Mehta from Cantor Fitzgerald reiterated a Buy rating on Host Hotels & Resorts (NYSE: HST), with a price target of $18. The company’s shares opened today at $16.03.

Mehta observed:

“3Q RevPAR Driven by Group. Adjusted FFO/sh. was in line with Cantor at $0.37 while adjusted EBITDA was $342m vs. $331m Cantor – note that company’s adjusted EBITDA includes gain of $12.0m from the business interruption proceeds. Total comparable RevPAR increased 3.8% with ADR increase of 2.2% and occ. gains of 120bps. Domestic group demand was up 3.4% and domestic group revenues were up 6.0%. Transient demand was soft, with revenues up ~1.0%; F&B was also soft (catering driven) with revenues up 0.3%, while other revenues were strong, driven by spa revenues, and attrition and cancellation fees.”

According to TipRanks.com, Mehta is a 1-star analyst with an average return of -0.9% and a 46.6% success rate. Mehta covers the Financial sector, focusing on stocks such as Ashford Hospitality Trust, Summit Hotel Properties, and Mid-America Apartment.

Host Hotels & Resorts has an analyst consensus of Moderate Buy, with a price target consensus of $16.77.

Principal Financial (NYSE: PFG)

Barclays analyst Jay Gelb reiterated a Hold rating on Principal Financial (NYSE: PFG) today and set a price target of $51. The company’s shares opened today at $57.40, close to its 52-week high of $57.90.

Gelb said:

“We anticipate PFG could generate an ROE (excluding AOCI other than FCTA) of 14% through 2017. This result would be above our 12% projection for the median life insurer.”

According to TipRanks.com, Gelb is a 5-star analyst with an average return of 8.8% and a 72.5% success rate. Gelb covers the Financial sector, focusing on stocks such as American International Group, Marsh & Mclennan Companies, and Arthur J. Gallagher & Co.

Principal Financial has an analyst consensus of Moderate Buy, with a price target consensus of $53.