Analysts Conflicted on These Financial Names: Store Capital (NYSE: STOR) and Lasalle Hotel Properties (NYSE: LHO)

By Jason Carr

Companies in the Financial sector have received a lot of coverage today as analysts weigh in on Store Capital (NYSE: STOR) and Lasalle Hotel Properties (NYSE: LHO).

Store Capital (NYSE: STOR)

Ladenburg analyst Daniel Donlan reiterated a Hold rating on Store Capital (NYSE: STOR) today. The company’s shares closed yesterday at $23.11.

According to TipRanks.com, Donlan is a 1-star analyst with an average return of -0.2% and a 61.5% success rate. Donlan covers the Financial sector, focusing on stocks such as Innovative Industrial Properties Inc, NexPoint Residential Trust Inc, and Four Corners Property Trust.

Currently, the analyst consensus on Store Capital is Moderate Buy and the average price target is $25.88, representing an 12.0% upside.

In a report released today, Mizuho Securities also downgraded the stock to Hold with a $24 price target.
Lasalle Hotel Properties (NYSE: LHO)

In a report released today, Floris van Dijkum from Boenning & Scattergood reiterated a Buy rating on Lasalle Hotel Properties (NYSE: LHO), with a price target of $35. The company’s shares closed yesterday at $31.08, close to its 52-week high of $31.87.

van Dijkum wrote:

“We are tweaking our normalized FFO estimates for LHO in 2017 and 2018 to reflect FFO adjustments from income tax benefits. The adjustments in earnings estimates do not cause changes in our underlying earnings or NAV valuation. We continue to view LHO as the most discounted stock based on an NAV basis among our hotel coverage. LHO shares have outperformed the SNL Hotel REIT index by nearly 5% since our initiation in April, but we continue to see more upside. We believe that the company could be aggressive in share buybacks based on its pristine balance sheet and discounted valuation. If management won’t provide earnings guidance to the market, share buybacks would be the strongest signal that management believes its shares are undervalued. We believe that LHO stock still has above average upside at current levels and reiterate our Outperform rating.”

According to TipRanks.com, Dijkum is a 3-star analyst with an average return of 3.8% and a 66.7% success rate. Dijkum covers the Financial sector, focusing on stocks such as Pennsylvania Real Estate ate Investment, Retail Properties of America Inc, and General Growth Properties Inc.

Lasalle Hotel Properties has an analyst consensus of Hold, with a price target consensus of $30.50.

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