Ladenburg Sees More Upside for DiamondRock Hospitality (DRH) Amid Hotel Sector Re-Rating

DiamondRock Hospitality Company (NASDAQ:DRH) is included among the 13 Best Dividend Stocks to Buy Under $25.

Ladenburg Sees More Upside for DiamondRock Hospitality (DRH) Amid Hotel Sector Re-Rating

On June 18, Ladenburg raised its price recommendation on DiamondRock Hospitality Company (NASDAQ:DRH) to $14 from $13. It reiterated a Buy rating on the shares. The analyst said the re-rating of the hotel real estate investment trust sector could continue as the Iran conflict comes to an end and demand from the World Cup supports the industry. The comments were made in a research note to investors.

Earlier, on June 1, Barclays analyst Richard Hightower raised the firm’s price goal on DHR to $12 from $10. He maintained an Equal Weight rating on the stock. Barclays increased its estimates and price targets for hotel real estate investment trusts, citing stronger operating performance so far this year. At the same time, the analyst noted that the lodging sector’s recent relative outperformance was “too far, too fast” compared with the underlying earnings stream. As a result, Barclays became “incrementally cautious on valuation,” according to a research note sent to investors.

DiamondRock Hospitality Company (NASDAQ:DRH) is a self-advised real estate investment trust (REIT). The company owns a geographically diversified portfolio of hotels, with a focus on leisure destinations and gateway markets.

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