Wells downgrades Park Hotels & Resorts to Equal Weight, cuts target to $12.50

As previously reported, Wells Fargo analyst Dori Kesten downgraded Park Hotels & Resorts to Equal Weight from Overweight with a price target of $12.50, down from $17, citing the firm’s analysis that takes into account the lodging REITs’ historical spread to the 10yr Treasury, liquidity, maturities, and its 2023/2024 estimates. While Park Hotels & Resorts showed well in Wells’ liquidity analysis, the firm believes the best case scenario for its 2023 CMBS maturity is well known, while other scenarios may pause its current year-to-date share price outperformance. Its incremental cap-ex spend is a long-term positive/near-term headwind, Wells adds.