Pebblebrook Hotel downgraded to Neutral at Compass Point on valuation

As previously reported, Compass Point downgraded Pebblebrook Hotel to Neutral from Buy with a price target of $17, down from $28, citing higher relative value and marginally negative 2024 EBITDA growth. While the firm has adjusted estimates “marginally” for several hotel owners, partly to account for Easter falling in the first quarter, which could displace some business transient demand to the second quarter, it believes the current share price momentum for hotel stocks should continue, “partly aided by short covering from the current relatively elevated 6.4% sector levels,” the analyst added.