Wells Fargo Raises Diamondrock Hospitality Price Target to $9.00 USD, Maintaining Equal-Weight Rating

Wells Fargo analyst James Feldman raised the price target for Diamondrock Hospitality (DRH) to $9.00 USD, a 9.09% increase from the previous target of $8.25 USD. Feldman maintained an Equal-Weight rating on the company. The average target price for DRH is $9.02 USD with a high estimate of $10.00 and a low estimate of $8.00 USD. The average brokerage recommendation is currently 2.3, indicating "Outperform" status.

Wells Fargo analyst James Feldman has raised the price target for DiamondRock Hospitality (DRH) to $9.00 USD, a 9.09% increase from the previous target of $8.25 USD. Feldman maintained an Equal-Weight rating on the company. The average target price for DRH is $9.02 USD, with a high estimate of $10.00 and a low estimate of $8.00 USD. The average brokerage recommendation is currently 2.3, indicating an "Outperform" status [1].

DiamondRock Hospitality is a self-advised real estate investment trust (REIT) that owns a leading portfolio of geographically diversified hotels concentrated in leisure destinations and top gateway markets. The company currently owns 36 premium quality hotels with over 9,700 rooms. The company's portfolio is strategically positioned to be operated under leading global brand families as well as independent boutique hotels in the lifestyle segment [1].

The consensus rating for DiamondRock Hospitality is Hold, with an average rating score of 2.17. The company's earnings are expected to grow by 6.25% in the coming year, from $0.96 to $1.02 per share. The P/E ratio of DiamondRock Hospitality is 32.29, which is higher than both the market average P/E ratio of about 28.34 and the Finance sector average P/E ratio of about 19.38 [1].

DiamondRock Hospitality has a P/B Ratio of 1.08, indicating that the company is reasonably valued with respect to its assets and liabilities. The company pays a dividend yield of 3.99%, placing it in the top 25% of dividend-paying stocks. The dividend payout ratio of 123.08% is not desirable as it may not be sustainable, but the company is expected to have a dividend payout ratio of 31.37% next year, indicating sustainability [1].

In recent months, the short interest in DiamondRock Hospitality has decreased by 16.14%, indicating that investor sentiment is improving significantly. The company has a news sentiment score of 1.66, which is higher than the average news sentiment score of Finance companies [1].

The top institutional investors in DiamondRock Hospitality include State Street Corp, Bank of America Corp DE, Pzena Investment Management LLC, and JPMorgan Chase & Co. Shares of DRH stock can be purchased through any online brokerage account [1].

References:
[1] https://www.marketbeat.com/stocks/NYSE/DRH/