On May 30, Morgan Stanley analyst Stephen Grambling raised his price target on Pebblebrook Hotel Trust (NYSE:PEB) to $8 from $7 but kept an Underweight rating on the shares.
The rating update came when the firm raised estimates “modestly across the board” for its Gaming & Lodging coverage to take into account the better Q1 results, along with the roughly in-line guidance expectations and mark-to-market adjustments for higher multiples.
Aerial view of a luxurious resort lifestyle hotel in a gateway city.
The analyst added that the discounted valuations among the group suggest that the market “still remains pessimistic near-term.”
Pebblebrook Hotel Trust reported a same-property hotel EBITDA of $62.3 million in its fiscal Q1 2025 results, surpassing the midpoint of its outlook by $4.3 million. This growth was primarily supported by efficiency efforts and proactive cost-reduction initiatives. The company also experienced a net loss of $32.2 million in the quarter.
Pebblebrook Hotel Trust is a real estate investment trust that invests and acquires hotel properties. Its hotels are located in several key markets in the US, including Florida, Los Angeles, Chicago, Boston, New York, and others.
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