Summit Hotel: Baird maintains Neutral, PT down to $4.5 from $5

Summit Hotel: Baird maintains Neutral, PT down to $4.5 from $5

Baird Financial downgraded Summit Hotel Properties (INN) to a Neutral rating from Overweight, and reduced its price target to $4.50 from $5.00. The move comes amid ongoing economic volatility and strategic challenges the company is facing. Baird analysts cited concerns over the company's ability to navigate through the current economic climate and execute its strategic initiatives effectively.

Summit Hotel Properties, a real estate investment trust (REIT) based in Austin, Texas, focuses on owning premium-branded lodging facilities. The company reported its second-quarter 2025 earnings on August 5, 2025, with adjusted funds from operations (FFO) of $0.27 per share, slightly below the consensus estimate of $0.26 per share. The company also declared a quarterly dividend of $0.08 per share, maintaining its 6.36% yield.

The downgrade follows a series of recent changes in the company's stock price target by various analysts. KeyBanc Capital had previously downgraded the stock to a sector weight from overweight and cut its price target to $8.00 from $13.00. Raymond James and Janney also made similar adjustments to their ratings and price targets.

Summit Hotel Properties has been facing challenges due to the impact of the pandemic on the travel industry and the economic slowdown. The company has been implementing strategic initiatives to navigate through these challenges, including securing a $400 million credit facility in July 2025. However, the economic uncertainty and the company's ability to execute its strategies effectively remain key concerns for investors.