Analyst Raises Price Target on Host Hotels and Resorts Inc
15% Potential Upside in This Hotel REIT
Host Hotels and Resorts, Inc. (NYSE:HST) stock has climbed quite a bit in recent months. In fact, one analyst is saying that investors of this lodging real estate investment trust (REIT) are about to be further rewarded.
In a note to investors on Wednesday, Argus Research analyst Jacob Kilstein raised his price target on Host Hotels and Resorts from $19.00 to $21.00. He currently has a “buy” rating on the company. (Source: “Host Hotels May Accommodate Investors with Luxurious Earnings, Dividend Increases,” Benzinga, August 24, 2016.)
Kilstein said that higher earnings, combined with stock buybacks and dividend hikes, could benefit HST stock in the next few quarters.
Host Hotels and Resorts is one of the largest owners of luxury hotels. The real estate investment trust owns 89 properties in the U.S. and nine properties internationally, with a total of 54,500 rooms. The company also has non-controlling interests in six joint ventures.
Based on the company’s stock price today, the analyst’s price target represents a 15% potential upside. Note that Host Hotels’ stock is already on an upward trend, having gained more than 19% in the past three months.
The hotel REIT is also a solid dividend payer, currently possessing an annual dividend yield of 4.38%.
Kilstein noted Host Hotels’ impressive financials in the most recent quarter. Driven by gains on the sale of non-core assets and operating profit growth, the company’s net income increased $137 million for the quarter and $222 million year-to-date. (Source: “Host Hotels & Resorts, Inc. Reports Results For The Second Quarter 2016,” Host Hotels and Resorts, Inc., July 29, 2016.)
Adjusted funds from operations (FFO) came in at $0.49 per share, up seven percent from the year-ago period. Kilstein said that, “the higher FFO reflected operational improvement, lower interest expense, and the impact of share repurchases.”
Returns are about to get even better for income investors, the analyst added. The company plans to sell less than $1.0 billion of property assets this year. Kilstein noted that the proceeds would be used to issue a special dividend, buy back shares, and reduce debt.
Dear Reader: There is no magic formula to getting rich. Success in investment vehicles with the best prospects for price appreciation can only be achieved through proper and rigorous research and analysis. We are 100% independent in that we are not affiliated with any bank or brokerage house. Information contained herein, while believed to be correct, is not guaranteed as accurate. Warning: Investing often involves high risks and you can lose a lot of money. Please do not invest with money you cannot afford to lose. The opinions in this content are just that, opinions of the authors. We are a publishing company and the opinions, comments, stories, reports, advertisements and articles we publish are for informational and educational purposes only; nothing herein should be considered personalized investment advice. Before you make any investment, check with your investment professional (advisor). We urge our readers to review the financial statements and prospectus of any company they are interested in. We are not responsible for any damages or losses arising from the use of any information herein. Past performance is not a guarantee of future results. All registered trademarks are the property of their respective owners
Sign up to receive our FREE Income Investors newsletter along with our special offers and get our FREE report:
5 Dividend Stocks to Own Forever
This is an entirely free service. No credit card required. You can opt-out at anytime.
We hate spam as much as you do.