Apple Hospitality REIT, the Real Estate sector company, was revisited by a Wall Street analyst today. Analyst Ari Klein from BMO Capital maintained a Hold rating on the stock and has a $12.00 price target.
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Ari Klein has given his Hold rating due to a combination of factors influencing Apple Hospitality REIT’s current financial performance and future outlook. The company’s third-quarter EBITDA and FFO were slightly better than expected, primarily due to strong expense management, despite a decline in RevPAR. However, the guidance for the upcoming quarters is mixed, with a lowered RevPAR range and implied fourth-quarter guidance, which is further pressured by external factors like the government shutdown.
Additionally, Apple Hospitality REIT has announced future development transactions for three hotels, which are not expected to close for over two years. This long-term development plan introduces uncertainties regarding capital allocation and anticipated returns. While the company’s revenue and EBITDA have shown some positive aspects, the overall mixed guidance and external pressures contribute to the Hold rating, as investors might want to wait for clearer signs of consistent growth and stability before making further investment decisions.
Based on the recent corporate insider activity of 56 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of APLE in relation to earlier this year.