Pebblebrook Hotel Trust Shares Down 3.52% Amid Analyst Forecasts

Pebblebrook Hotel Trust's (PEB) shares fell 3.52% to $10.29 on Jul 7. Analysts forecast an average target price of $10.56, with a high estimate of $14.00 and a low estimate of $8.00. The average target implies a 2.70% upside from the current price. The estimated GF Value for PEB in one year is $16.85, suggesting a 63.83% upside from the current price.

Pebblebrook Hotel Trust's (PEB) shares experienced a significant drop, falling 3.52% to $10.29 on July 7th. The decline comes despite analysts forecasting an average target price of $10.56, with a high estimate of $14.00 and a low estimate of $8.00. This average target implies a 2.70% upside from the current price, while the estimated GF Value for PEB in one year is $16.85, suggesting a 63.83% upside from the current price.

Analysts from various firms have issued a mix of ratings and price targets for PEB. Wells Fargo & Company recently raised its target price for PEB from $9.00 to $10.00, maintaining an equal weight rating [1]. Meanwhile, Compass Point lowered its rating from "buy" to "neutral" and reduced its target price from $17.00 to $15.00. Evercore ISI, Wedbush, Truist Financial, and Wall Street Zen have also issued target prices ranging from $11.00 to $9.00, with a majority assigning a "hold" rating to the stock [1].

Market conditions and recent earnings reports may have contributed to the stock's volatility. On May 1st, PEB reported $0.16 earnings per share (EPS) for the quarter, exceeding analysts' consensus estimates of $0.13 by $0.03. The company's quarterly revenue was up 2.0% compared to the same quarter last year. However, PEB's negative return on equity of 0.32% and negative net margin of 0.61% may have raised concerns among investors.

Institutional investors and hedge funds have shown interest in PEB. Woodline Partners LP, Centersquare Investment Management LLC, Alyeska Investment Group L.P., Nuveen Asset Management LLC, and Cbre Investment Management Listed Real Assets LLC have all increased their stakes in the company [1]. Despite this interest, PEB continues to trade at a median discount to its consensus net asset value (NAV) of 48.5%, according to S&P Global Market Intelligence data [2].

The hotel sector, of which PEB is a part, traded at the largest median discount to NAV at 35.5% as of June 30, down from a 35.7% median discount to NAV as of May 30 [2]. This discount may indicate that investors perceive the hotel sector as undervalued, potentially providing opportunities for growth.

In conclusion, PEB's recent stock performance reflects a complex interplay of analyst forecasts, market conditions, and company-specific factors. As the company continues to navigate these dynamics, investors should closely monitor PEB's financial performance and the evolving market sentiment.

References:
[1] https://www.marketbeat.com/instant-alerts/wells-fargo-company-forecasts-strong-price-appreciation-for-pebblebrook-hotel-trust-nysepeb-stock-2025-07-01/
[2] https://seekingalpha.com/article/4799274-nav-monitor-us-equity-reits-trade-higher-discount-to-nav-june