Wyndham Hotels & Resorts initiated with an Overweight at Morgan Stanley

Morgan Stanley analyst Stephen Grambling initiated coverage of Wyndham Hotels & Resorts with an Overweight rating and $87 price target. The analyst sees accelerating room growth in a "capital efficient model" driving a re-rating of Wyndham shares. In addition, the company’s capex as a percent of EBITDA has steadily declined since the La Quinta acquisition, Grambling tells investors in a research note.