DiamondRock downgraded to Equal Weight from Overweight at Wells Fargo

Wells Fargo downgraded DiamondRock to Equal Weight from Overweight with a price target of $9, down from $9.50. While the company has embedded internal growth from prior years’ renovation tailwinds and beneficial convention calendar exposures, its in line group demand exposure vs. peers paired with outsized leisure exposure vs. peers, the second strongest occupancy recovery from prior peak vs. peers, and a near-term hush in lodging REIT M&A chatter leads Wells to believe capital should be focused elsewhere for the near-term, the analyst tells investors in a research note.