Analysts Offer Insights on Financial Companies: Apple Hospitality REIT (NYSE: APLE) and Starwood Property Trust (NYSE: STWD)

By Ryan Adsit

There’s a lot to be optimistic about in the Financial sector as 2 analysts just weighed in on Apple Hospitality REIT (APLEResearch Report) and Starwood Property Trust (STWDResearch Report) with bullish sentiments.

Apple Hospitality REIT (APLE)

B.Riley FBR analyst Bryan Maher maintained a Buy rating on Apple Hospitality REIT today and set a price target of $19. The company’s shares closed yesterday at $16.21.

Maher commented:

“Apple Hospitality REIT (APLE) posted mostly in-line 1Q19 results with adjusted EBITDAre coming in at $100.7M, slightly below our estimate of $100.8M but above the consensus estimate of $98.7M. MFFO/share came in at $0.38, again, slightly below our $0.39 estimate but in line with the consensus estimate of $0.38. Comparable RevPAR growth improved 0.1%, driven by 1.2% ADR growth, offset by a 1.1% decline in occupancy. Despite wage/benefit cost headwinds, management was able to hold hotel EBITDA margins to only a 10 bps decline (at 36.0%). Apple Hospitality acquired two hotels during the quarter for a total purchase price of approximately $52.0M with another five hotels currently under contract for a total expected purchase price of $159.0M.”

According to TipRanks.com, Maher is a 1-star analyst with an average return of -0.4% and a 49.3% success rate. Maher covers the Financial sector, focusing on stocks such as Industrial Logistics Properties Trust, Senior Housing Properties Trust, and Office Properties Income Trust.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Apple Hospitality REIT with a $19 average price target.

See today’s analyst top recommended stocks >>

Starwood Property Trust (STWD)

B.Riley FBR analyst Timothy P. Hayes reiterated a Buy rating on Starwood Property Trust today and set a price target of $24. The company’s shares closed yesterday at $22.41.

Hayes observed:

“We reiterate our Buy rating and $24 PT on Starwood Property Trust (STWD) following 1Q19 results that were negatively impacted by a $0.24/share write-down but were otherwise positive. During the quarter, STWD wrote down its regional mall JV to reflect the loss of a key anchor tenant and potential implications from co-tenancy provisions. While we do not view the write- down positively, we are encouraged by the low residual exposure to retail and management’s commitment to crystallize the embedded gains in its real estate portfolio, which should more than offset the JV write-down.”

According to TipRanks.com, Hayes is a 4-star analyst with an average return of 8.9% and a 78.9% success rate. Hayes covers the Financial sector, focusing on stocks such as Saratoga Investment Corp, Cherry Hill Mortgage, and Ellington Financial.

The word on The Street in general, suggests a Strong Buy analyst consensus rating for Starwood Property Trust with a $24.50 average price target.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.