Longbow analyst Alton Stump downgraded Choice Hotels (CHH) to Neutral from Buy without a price target.
The analyst cites valuation for the downgrade with the shares up 40% year-to-date and above his prior $96 price target.
Despite a "sluggish" RevPAR environment through the first three quarters of 2019, Choice generated high single-digit EBITDA growth, mainly through consistent low single-digit room count expansion and "disciplined" cost management, Stump tells investors in a research note. Based on recent commentary from peers and domestic franchisee contacts, however, the analyst expects RevPAR to remain soft industrywide over at least the next 12 months.
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