Canaccord Genuity Keeps a Hold Rating on Ashford Hospitality Trust

By Ryan Adsit

Canaccord Genuity analyst Ryan Meliker reiterated a Hold rating on Ashford Hospitality Trust (NYSE: AHT) yesterday and set a price target of $7. The company’s shares opened today at $6.43.

Meliker commented:

“Date and time of first dissemination: June 25, 2017, 23:11 ET Date and time of production: June 25, 2017, 22:54 ET Target Price / Valuation Methodology: Ashford Hospitality Trust – AHT Our $7 price target is based on a DCF analysis assuming a 9.0% discount rate and a 3% terminal growth rate. This valuation is supported by assuming a 5% discount to our termination fee adjusted year-end 2017 NAV estimate, which is driven by an 8.0% cap rate on 2018 estimates (assuming a 6% FF&E reserve). Our year-end 2017 price target implies a 10.9x 2018E EBITDA multiple. Risks to achieving Target Price / Valuation: Ashford Hospitality Trust – AHT 1. AHT is externally advised by AINC.”

According to TipRanks.com, Meliker is a 5-star analyst with an average return of 15.4% and a 71.7% success rate. Meliker covers the Financial sector, focusing on stocks such as Apartment Investment & Management, Preferred Apartment Communities, and NexPoint Residential Trust Inc.

Ashford Hospitality Trust has an analyst consensus of Moderate Buy, with a price target consensus of $7.50.

Based on Ashford Hospitality Trust’s latest earnings report for the quarter ending March 31, the company posted quarterly revenue of $353 million and GAAP net loss of $25.72 million. In comparison, last year the company earned revenue of $368 million and had a GAAP net loss of $10.18 million.

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Ashford Hospitality Trust, Inc. is a real estate investment trust, which engages in investing in the hospitality industry. It invests in lodging-related assets, including direct hotel investments, mezzanine financing through origination or acquisition, first-lien mortgage financing through origination or acquisition, sale-leaseback transactions, and other hospitality transactions. The company was founded by Montgomery J. Bennett in May 2003 and is headquartered in Dallas, TX.