Choice Hotels Intl (NYSE:CHH) Azioni

Choice Hotels Intl

As of Dec. 31, 2024, Choice Hotels operated 654,000 rooms across the economy, midscale, upscale, and extended-stay segments. Comfort Inn and Comfort Suites are the largest brands (26% of the company's total domestic rooms), while Ascend and Cambria (10% of total domestic rooms) are newer lifestyle and select-service brands. Choice closed on its Radisson acquisition in August 2022, which added about 70,000 rooms. Franchises account for 100% of total revenue, and the United States represented 78% of total rooms in 2024.

Choice Hotels International, Inc. Common Stock

Choice Hotels International Inc

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CHINA HUARONG ENGRY CO by CHINA HUARONG ENERGY CO LTD

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Truist Securities analyst Patrick Scholes maintains Choice Hotels Intl (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CHH#NYSE">CHH</a>) with a Hold and lowers the price target from $144 to $128.

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Truist Securities Maintains Hold on Choice Hotels Intl, Lowers Price Target to $128

In a turbulent first half of 2025 for the <a href="https://www.benzinga.com/general/travel">global travel sector</a>, Goldman Sachs sees an edge for investors: &#8220;premiumization.&#8221;
From lie-flat airline seats to luxury cruise cabins and high-end hotel brands, premium travel products have shown striking resilience to macroeconomic pressures—and companies leaning into this segment are emerging <a href="https://www.benzinga.com/topic/travel-stocks">as the strongest performers.</a>
Premium travel is "increasingly driven by higher-income consumers less impacted by short-term macro volatility," said Goldman Sachs analyst Catherine O'Brien.
According to O'Brien, stocks most exposed to "premiumization" include Buy-rated Alaska Air Group, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALK#NYSE">ALK</a>), Delta Air Lines, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DAL#NYSE">DAL</a>), United Airlines Holdings, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/UAL#NASDAQ">UAL</a>), Norwegian Cruise Line Holdings Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NCLH#NYSE">NCLH</a>) and Royal Caribbean Cruises Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RCL#NYSE">RCL</a>).
<h3 class="wp-block-heading">Airlines: Premium Demand Leads</h3>
In a note shared Thursday, O'Brien highlighted that premium cabins outperformed economy in the first quarter across all major U.S. airlines.
Delta Air Lines posted a 6.8% year-over-year increase in premium revenue in the first quarter, while its main cabin revenue declined 1.2%. United Airlines reported international Polaris cabin revenue up 8% and Premium Plus up 5%.
Alaska Air said premium accounted for 34% of total revenue, with Hawaiian routes contributing a 17% jump in high-end bookings.
Airlines like JetBlue Airways Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JBLU#NASDAQ">JBLU</a>) and American Airlines Group Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAL#NASDAQ">AAL</a>) echoed similar trends, with premium class outperforming main cabin across both domestic and international routes.
This shift isn't just cyclical. Airlines have introduced more segmented products—from extra legroom economy to exclusive suites—making premium more accessible while preserving upsell potential. Delta's domestic first-class load factor jumped to 75%, from just 12% fifteen years ago.
<h3 class="wp-block-heading">Hotels: Luxury RevPAR Resilience</h3>
In lodging, luxury continues to drive performance.
Marriott International Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MAR#NASDAQ">MAR</a>) said its luxury tier had the strongest occupancy and average daily rate (ADR) growth globally in the first quarter, while Hyatt Hotels Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/H#NYSE">H</a>) saw luxury RevPAR (revenue per available room) rise over 8%.
By contrast, Choice Hotels International Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CHH#NYSE">CHH</a>) and Wyndham Hotels &amp; Resorts Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WH#NYSE">WH</a>), both focused on economy and midscale properties, slashed their 2025 outlooks by up to 300 basis points.
Premium hotel supply remains constrained due to higher construction costs and longer breakeven timelines, which support pricing power and margin sustainability. Growth in luxury RevPAR has led all chain scales for four straight quarters, with the first quarter of 2025 showing 7.5% year-over-year growth.
<h3 class="wp-block-heading">Cruise Lines: Premium Pricing Power</h3>
The cruise sector is also sailing toward premium. Goldman notes that Norwegian Cruise Line and Royal Caribbean Cruises have priced their newest ships at up to 60% premiums over older vessels.
For instance, Royal&#8217;s Icon of the Seas commands a 43% price premium, while NCLH's Norwegian Aqua leads with a 59% markup.
Premium cruise offerings such as "The Haven" suites on Norwegian ships continue to sell out early and achieve top customer satisfaction scores. RCL also noted that ships built after the Oasis class generate 2x the EBITDA of older ships.
Read Next:
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</ul>
Photo: oneinchpunch/Shutterstock

Travel

JBLU

NCLH

Premium Travel Demand Gives Airlines, Hotels And Cruises An Edge in 2025: Goldman Sachs

Choice Hotels Intl's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CHH#NYSE">CHH</a>) short percent of float has risen 31.92% since its last report. The company recently reported that it has 6.51 million shares sold short, which is 56.62% of all regular shares that are available for trading. Based on its trading volume, it would take traders 17.85 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock?adType=benzinga-insights&amp;ad=short-interest&amp;campaign=wallstreetadvantage">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest?adType=benzinga-insights&amp;ad=short-interest&amp;campaign=wallstreetadvantage">List of the most shorted stocks</a>
<h3>Choice Hotels Intl Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2025/1747926028_0_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Choice Hotels Intl has grown since its last report. This does not mean that the stock is going to fall in the near-term but traders should be aware that more shares are being shorted.
<h3>Comparing Choice Hotels Intl's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://www.benzinga.com/pro/">Benzinga Pro</a>, Choice Hotels Intl's peer group average for short interest as a percentage of float is 5.95%, which means the company has more short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze?adType=benzinga-insights&amp;ad=short-interest&amp;campaign=wallstreetadvantage">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Short Sellers

Short Ideas

Trading Ideas

What's Driving the Market Sentiment Around Choice Hotels Intl?

Baird analyst Michael Bellisario maintains Choice Hotels Intl (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CHH#NYSE">CHH</a>) with a Outperform and lowers the price target from $150 to $145.

Baird Maintains Outperform on Choice Hotels Intl, Lowers Price Target to $145

Choice Hotels Intl (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CHH#NYSE">CHH</a>) lowers FY2025 GAAP EPS guidance from $6.04-$6.29 to $5.86-$6.18 vs $6.39 analyst estimate..

Guidance

Choice Hotels Intl Lowers FY2025 GAAP EPS Guidance from $6.04-$6.29 to $5.86-$6.18 vs $6.39 Est

Choice Hotels Intl (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CHH#NYSE">CHH</a>) lowers FY2025 Adj EPS guidance from $6.98-$7.24 to $6.90-$7.22 vs $7.04 analyst estimate..

Choice Hotels Intl Lowers FY2025 Adj EPS Guidance from $6.98-$7.24 to $6.90-$7.22 vs $7.04 Est

Choice Hotels Intl (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CHH#NYSE">CHH</a>) reported quarterly earnings of $1.34 per share which missed the analyst consensus estimate of $1.37 by 2.19 percent. This is a 4.69 percent increase over earnings of $1.28 per share from the same period last year. The company reported quarterly sales of $332.86 million which beat the analyst consensus estimate of $331.64 million by 0.37 percent. This is a 0.27 percent increase over sales of $331.95 million the same period last year.

Earnings

Earnings Beats

Earnings Misses

Choice Hotels Intl Q1 Adj. EPS $1.34 Misses $1.37 Estimate, Sales $332.86M Beat $331.64M Estimate

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Earnings Scheduled For May 8, 2025

U.S. stocks traded mixed at midday Wednesday, as investors remained cautious ahead of the Federal Reserve&#8217;s upcoming policy decision, with Chair Jerome Powell set to <a href="https://www.benzinga.com/economics/macro-economic-events/25/05/45258146/all-eyes-on-powell-betting-markets-reveal-what-the-fed-chair-is-most-likely-to-say-on-wednesday">speak at 2:30 p.m. ET.</a>
Trade developments continued to influence market sentiment. During a Senate hearing, Treasury Secretary Scott Bessent confirmed that initial talks with China will begin in Switzerland later this week, though he emphasized they are only preliminary.
Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) led notable decliners, plunging over 7% after a Bloomberg report indicated an Apple executive's testimony suggested AI may be eroding traditional search market share.
The Dow Jones outperformed, while tech-heavy indexes like the Nasdaq 100 and S&amp;P 500 lagged under pressure from Alphabet&#8217;s sharp decline. Sector performance was positive overall, with modest gains led by financials.
In commodities, U.S. natural gas prices at the Henry Hub surged over 5% to $3.640 per million British units, driven by recovering feedgas flows to Freeport LNG and forecasts for early-season heat boosting demand.
Gold retreated 1.5% after a strong two-day rally, while oil dipped 1.2% to $58.30 following a brief spike to $60 overnight.
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) held steady at around $96,800.
<h3 class="wp-block-heading">Wednesday&#8217;s Performance In Major US Indices, ETFs</h3>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>1-day %</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>41,115.49</td>
<td>0.7%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>1,993.68</td>
<td>0.5%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,619.12</td>
<td>0.2%</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>19,781.12</td>
<td>-0.1%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated by 12:10 p.m. ET </figcaption></figure>
According to&nbsp;<a href="https://www.benzinga.com/pro/?utm_source=BZprocontent&amp;t=be2bearmibe3na1">Benzinga Pro</a>&nbsp;data:
<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) inched 0.2% up to $559.98.</li>
<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) rose 0.7% to $410.96.</li>
<li>The tech-heavy&nbsp;Invesco QQQ Trust Series&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>)&nbsp;fell 0.2% to $480.71.</li>
<li>The&nbsp;iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) rose 0.6% to $197.89.</li>
<li>The&nbsp;Financials&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>) outperformed, up 0.9%; the&nbsp;Communication Services&nbsp;Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLC#NYSE">XLC</a>) lagged, down 0.8%.</li>
</ul>
<h3 class="wp-block-heading">Wednesday&#8217;s Stock Movers</h3>
Stocks reacting to earnings included:
<ul>
<li>Arista Networks Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ANET#NYSE">ANET</a>) down 6.84%</li>
<li>Gen Digital Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GEN#NASDAQ">GEN</a>) up 9.16%</li>
<li>Advanced Micro Devices Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) up 0.89%</li>
<li>International Flavors &amp; Fragrances Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IFF#NYSE">IFF</a>) down 6.09%</li>
<li>Electronic Arts Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EA#NASDAQ">EA</a>) up 0.41%</li>
<li>Mosaic Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MOS#NYSE">MOS</a>) up 3.58%</li>
<li>Corpay Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CPAY#NYSE">CPAY</a>) down 1.80%</li>
<li>Wynn Resorts Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WYNN#NASDAQ">WYNN</a>) up 0.56%</li>
<li>Jack Henry &amp; Associates Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JKHY#NASDAQ">JKHY</a>) down 0.67%</li>
<li>Devon Energy Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DVN#NYSE">DVN</a>) down 0.16%</li>
<li>Super Micro Computer Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMCI#NASDAQ">SMCI</a>) down 6.04%</li>
<li>Coty Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COTY#NYSE">COTY</a>) down 9.09%</li>
<li>Rivian Automotive Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RIVN#NASDAQ">RIVN</a>) down 2.90%</li>
<li>The Walt Disney Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIS#NYSE">DIS</a>) up 11.46%</li>
<li>Uber Technologies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UBER#NYSE">UBER</a>) down 2.02%</li>
<li>Emerson Electric Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EMR#NYSE">EMR</a>) up 2.72%</li>
<li>Johnson Controls International plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JCI#NYSE">JCI</a>) up 1.52%</li>
<li>Vistra Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VST#NYSE">VST</a>) down 4.78%</li>
<li>Verisk Analytics, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VRSK#NASDAQ">VRSK</a>) up 4.22%</li>
<li>Rockwell Automation, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ROK#NYSE">ROK</a>) up 12.29%</li>
<li>Cheniere Energy Partners, L.P. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CQP#NYSE">CQP</a>) down 0.82%</li>
<li>CDW Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CDW#NASDAQ">CDW</a>) up 6.90%</li>
<li>NiSource Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NI#NYSE">NI</a>) up 3.13%</li>
</ul>
Stocks slated to report earnings after the close include Fortinet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FTNT#NASDAQ">FTNT</a>), Axon Enterprise Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAXN#NASDAQ">AAXN</a>), Corteva Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CTVA#NYSE">CTVA</a>), Occidental Petroleum Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OXY#NYSE">OXY</a>), Texas Pacific Land Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TPL#NYSE">TPL</a>), Atmos Energy Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ATO#NYSE">ATO</a>), Fidelity National Financial Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FNF#NYSE">FNF</a>), and Western Gas Partners LP (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WES#NYSE">WES</a>).
Read Next:
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<li><a href="https://www.benzinga.com/markets/cryptocurrency/25/05/45257429/michael-saylor-calls-bitcoin-the-corporate-survival-strategy-for-96-of-companies">Michael Saylor Calls Bitcoin The &#8216;Corporate Survival Strategy&#8217; For 96% of Companies</a></li>
</ul>
Powell will be speaking at 2:30 p.m. ET. Watch below.
<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"> 
<div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="&#x1f534;WATCH LIVE: FOMC Rate Decision &#x7C; Fed Chair Powell Press Conference &#x7C; May 7, 2025" width="500" height="281" src="https://www.youtube.com/embed/xpIaAwIGoIA?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
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Photo: Shutterstock

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Wall Street Mixed Ahead Of Fed Meeting, Alphabet Sinks: What's Driving Markets Wednesday?

Barclays analyst Anthony Powell maintains Choice Hotels Intl (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CHH#NYSE">CHH</a>) with a Underweight and lowers the price target from $132 to $111.

Barclays Maintains Underweight on Choice Hotels Intl, Lowers Price Target to $111

Morgan Stanley analyst Stephen Grambling maintains Choice Hotels Intl (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CHH#NYSE">CHH</a>) with a Underweight and lowers the price target from $124 to $115.

Morgan Stanley Maintains Underweight on Choice Hotels Intl, Lowers Price Target to $115

Goldman Sachs analyst Lizzie Dove downgraded the outlook for U.S. Lodging C-Corps and Timeshares due to weaker consumer demand, geopolitical uncertainty, and negative impacts from U.S. airlines.
As a result, 2025 RevPAR forecasts are being lowered by approximately 125 basis points. Key challenges include a decline in Canadian tourism and reduced government travel, which are expected to impact U.S. RevPAR negatively.
Although a recession scenario isn't fully factored in, a 45% probability of a U.S. recession is assumed. The focus is on asset-light companies with global exposure and less reliance on U.S. resorts, as the decline in IMF and non-RevPAR fees has yet to be priced in, said the analyst.
Also Read: <a target="_blank" href="https://www.benzinga.com/25/04/44791936/whats-going-on-with-ionq-stock-today" rel="noreferrer noopener">What's Going On With IonQ Stock Today?</a>
In a choppier macro environment, the preference is for stocks with more global diversity, lower U.S. resort exposure, asset-light business models, and stronger prospects for non-RevPAR and ancillary revenues.
Historical context shows that lodging revenue growth has been cyclical, with significant downturns during previous recessions, where business demand impacts leisure travel first, and premium chains see larger RevPAR declines than economy chains, the analyst opined.
Hotel C-Corps have shifted to asset-light, fee-based business models in the past decade, which have shown resilience during downturns, as franchise revenues tend to fare better than owned/leased or timeshare revenues.
Incentive management fees (IMFs) are highly volatile, with U.S. IMF contracts more binary, impacting US properties more than international ones.
While consumer pressures in a downturn could impact credit card fees, supply growth for 2025 is unlikely to be threatened. However, the outlook for 2026 and beyond could face risks due to rising construction costs and economic uncertainty.
The analyst upgraded the shares of Choice Hotels International Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CHH#NYSE">CHH</a>) from Sell to Buy and lowered the price forecast from $141 to $138.
The upgrade was done due to its defensive position, primarily driven by its franchise revenue structure and strong balance sheet, which makes it more resilient amid economic uncertainty.
CHH is less affected by the current macroeconomic challenges compared to other US lodging companies, with most of its customers originating from the US, and minimal exposure to international tourism, particularly from Canada.
Recent data shows improving trends for CHH, with steady consumer purchase intent and better performance, especially among lower-income customer segments, despite broader concerns about consumer confidence.
The analyst downgraded the shares of Hyatt Hotels Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/H#NYSE">H</a>) from Neutral to Sell and lowered the price forecast from $150.00 to $110.00.
Hyatt displays higher macro sensitivity, driven by factors such as a larger share of management contracts, significant exposure to China, and a more limited pipeline for in-construction growth.
Despite Hyatt's shift to a more asset-light model, it remains more exposed to macro-sensitive segments compared to peers, including a higher percentage of managed footprint, IMF fees, and exposure to the Chinese market, said the analyst.
The analyst downgraded Hilton Worldwide Holdings (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HLT#NYSE">HLT</a>) stock from Buy to Neutral and lowered the price forecast from $296 to $235.
The analyst also downgraded the shares of Marriott International Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MAR#NASDAQ">MAR</a>) from Buy to Neutral and lowered the price forecast from $313.00 to $245.00.
Hilton Worldwide and Marriott International are downgraded due to macro volatility and consumer pressures, which are expected to negatively impact macro-sensitive segments like IMF, credit card revenues, and owned &amp; leased properties.
Both companies have strong business models with resilient balance sheets, but their valuations remain high compared to historical cycles (2016-2019), and consensus estimates, especially for IMF and non-RevPAR fees, are considered too optimistic.
Since their inclusion in the Buy list in September 2024, both MAR and HLT stocks have underperformed, with recent negative signals about consumer health and travel impacting their performance relative to the S&amp;P 500.
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Downgrades

General

Goldman Sachs Cuts Outlook For These Hotel And Lodging Stocks As Potential Recession Looms

Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades and downgrades, please see our <a href="https://www.benzinga.com/analyst-stock-ratings">analyst ratings page</a>.
<ul>
<li>Truist Securities cut Winnebago Industries, Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WGO#NYSE">WGO</a>) price target from $50 to $38. Truist Securities analyst Michael Swartz maintained a Buy rating. Winnebago shares closed at $31.12 on Friday. <a href="https://www.benzinga.com/quote/WGO/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Keybanc slashed the price target for Celanese Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CE#NYSE">CE</a>) from $76 to $71. Keybanc analyst Bradley Thomas maintained an Overweight rating. Celanese shares closed at $38.38 on Friday. <a href="https://www.benzinga.com/quote/CR/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Wells Fargo lowered Comcast Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CMCSA#NASDAQ">CMCSA</a>) price target from $37 to $31. Wells Fargo analyst Steven Cahall downgraded the rating for the stock from Equal-Weight to Underweight. Comcast shares closed at $33.72 on Friday. See how other analysts <a href="https://www.benzinga.com/quote/CMCSA/analyst-ratings">view this stock</a>.</li>
<li>Citigroup cut the price target for Cricut, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRCT#NASDAQ">CRCT</a>) from $6 to $4. Citigroup analyst Asiya Merchant downgraded the stock from Neutral to Sell. Cricut shares closed at $4.89 on Friday. <a href="https://www.benzinga.com/quote/CRCT/analyst-ratings">See how other analysts view this stock.</a></li>
<li>JMP Securities cut the price target for Warby Parker Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WRBY#NYSE">WRBY</a>) from $30 to $22. JMP Securities analyst Devin Ryan maintained a Market Outperform rating. Warby Parker shares closed at $14.80 on Friday. <a href="https://www.benzinga.com/quote/WRBY/analyst-ratings">See how other analysts view this stock.</a></li>
<li>JP Morgan slashed Flywire Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FLYW#NASDAQ">FLYW</a>) price target from $16 to $9. JP Morgan analyst Tien-Tsin Huang downgraded the stock from Neutral to Underweight. Flywire shares settled at $8.53 on Friday. <a href="https://www.benzinga.com/quote/FLYW/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Baird increased Fastenal Company (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FAST#NASDAQ">FAST</a>) price target from $80 to $86. Baird analyst David Manthey maintained a Neutral rating. Fastenal shares closed at $80.64 on Friday. <a href="https://www.benzinga.com/quote/FAST/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Goldman Sachs slashed Choice Hotels International, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CHH#NYSE">CHH</a>) price target from $141 to $138. Goldman Sachs analyst Lizzie Dove upgraded the stock from Sell to Buy. Choice Hotels International shares closed at $124.87 on Friday.  <a href="https://www.benzinga.com/quote/CHH/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Truist Securities cut the price target for Wells Fargo &amp; Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WFC#NYSE">WFC</a>) from $84 to $73. Truist Securities analyst John McDonald maintained a Buy rating. Wells Fargo shares settled at $62.51 on Friday. <a href="https://www.benzinga.com/quote/WFC/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Keybanc raised Corteva, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CTVA#NYSE">CTVA</a>) price target from $70 to $71. Keybanc analyst Bradley Thomas maintained an Overweight rating. Corteva shares closed at $59.28 on Friday. <a href="https://www.benzinga.com/quote/ctv/analyst-ratings">See how other analysts view this stock</a>.</li>
</ul>
Considering buying CTVA stock? Here&#8217;s what analysts think: 
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</ul>
Photo via Shutterstock

Markets

CMCSA

CRCT

FAST

FLYW

WRBY

Corteva To Rally Around 20%? Here Are 10 Top Analyst Forecasts For Monday

Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades, downgrades and initiations, please see our <a href="https://www.benzinga.com/analyst-stock-ratings">analyst ratings page</a>.
<ul>
<li>Baird analyst Rob Oliver upgraded the rating for Atlassian Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TEAM#NASDAQ">TEAM</a>) from Neutral to Outperform but lowered the price target from $320 to $225. Atlassian shares closed at $198.37 on Friday. <a href="https://www.benzinga.com/quote/team/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Goldman Sachs analyst Lizzie Dove upgraded Choice Hotels International, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CHH#NYSE">CHH</a>) from Sell to Buy but slashed the price target from $141 to $138. Choice Hotels shares closed at $124.87 on Friday. <a href="https://www.benzinga.com/quote/CHH/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Truist Securities analyst Peter Osterland upgraded the rating for Element Solutions Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ESI#NYSE">ESI</a>) from Hold to Buy but lowered the price target from $28 to $24. Element Solutions shares closed at $18.25 on Friday. <a href="https://www.benzinga.com/quote/ESI/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Susquehanna analyst James Friedman upgraded Infosys Limited (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/INFY#NYSE">INFY</a>) from Negative to Neutral and maintained the price target of $17. Infosys shares closed at $16.88 on Friday. <a href="https://www.benzinga.com/quote/INFY/analyst-ratings">See how other analysts view this stock</a>.</li>
</ul>
Considering buying TEAM stock? Here&#8217;s what analysts think: 
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Photo via Shutterstock

Upgrades

Pre-Market Outlook

INFY

TEAM

This Atlassian Analyst Turns Bullish; Here Are Top 4 Upgrades For Monday

Goldman Sachs analyst Lizzie Dove upgrades Choice Hotels Intl (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CHH#NYSE">CHH</a>) from Sell to Buy and lowers the price target from $141 to $138.

Goldman Sachs Upgrades Choice Hotels Intl to Buy, Lowers Price Target to $138

BofA Securities analyzes the extent of tariffs and the macroeconomic situation&#8217;s effect on the earnings of gaming and lodging companies.
Since BofA&#8217;s previous report on April 1, stocks in the lodging and gaming sector have dropped 11% % -25 %, underperforming the S&amp;P 500's 16% decline.
Rising tariffs have significantly increased recession risks, with the sector now pricing in an 85% % -100 % chance of a downturn.
Investor concerns have escalated from market correction to a potential full-scale recession. A tariff-driven slowdown could cut sector revenues by 2%–4% and EBITDA by 3%–8%.
Recessions differ in nature, but the past three saw average peak-to-trough GDP drops of 5.1% and 10% in RevPAR.
According to the analyst, sub-sector sensitivity varies, with regional gaming and skiing less affected, while hotels and timeshares are more exposed. 
Also Read: <a href="https://www.benzinga.com/news/25/04/44698868/tariffs-recession-fears-could-derail-wayfair-rh-and-etsy-says-analyst">Tariffs, Recession Fears Could Derail Wayfair, RH And Etsy, Says Analyst</a>
Earnings risk is highest for gaming operators and lodging REITs due to their high operating leverage. COVID and GFC downturns lasted about 67 days; current declines are 55 days in, said the analyst.
A 1% GDP decline could reduce hotel RevPAR by 2%–4%, broader sector revenue by 2%–4%, and EBITDA by 3%–8%.
Tariffs are projected to impact GDP by 1%–1.5%, amplifying pressure on hospitality earnings.
Early data from Apple Hospitality REIT Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/APLE#NYSE">APLE</a>) signals underperformance, with potential RevPAR guidance cuts of 2% to 3% and flat growth for the U.S. in 2025.
Domestic gaming stocks are currently trading at notably low valuations, with 2025 EBITDA multiples at 6.5x and free cash flow yields at 15%, while operating companies are at 6.3x and 20%, respectively, said the analyst.
These figures sit one standard deviation below long-term averages, hitting levels last seen in 2022 and even lower than in 2016 and 2018. 
Lodging C-Corps are also below historical norms, except for Hilton Hotels Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HLT#NYSE">HLT</a>), which still trades at a premium.
Lodging REITs have dropped to valuation lows only previously observed during the COVID-19 and Global Financial crises.
Meanwhile, timeshare valuations are also depressed, and Vail Resorts Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MTN#NYSE">MTN</a>) is now trading at its lowest multiple since 2011.
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Photo: Shutterstock

APLE

CHDN

BofA Flags Rising Risks For Gaming And Lodging Firms As Valuations Tumble

Jefferies analyst David Katz maintains Choice Hotels Intl (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CHH#NYSE">CHH</a>) with a Hold and lowers the price target from $154 to $133.

Jefferies Maintains Hold on Choice Hotels Intl, Lowers Price Target to $133

A 10% decline in Canadian travel may result in 2 million fewer visits and $2.1 billion in <a href="https://www.benzinga.com/general/travel">lost spending to the U.S.</a> 
That&#8217;s according to Goldman Sachs analyst Lizzie Dove, citing <a href="https://www.ustravel.org/press/potential-results-decline-canadian-travel-united-states">data</a> from the U.S. Travel Association. Dove recently conducted a deep dive into Canadian tourist exposure for airlines, cruises, lodging, and theme parks.
Canada, she notes, accounts for 26% of U.S. international tourism. In March — three months after President Donald Trump dissed then-Canadian Prime Minister Justin Trudeau by calling him "governor" and Canada as "the 51st state" — there was an 11% year-over-year decline in tourism. 
A &#8220;pullback in Canadian tourism is the most likely channel to create a modest drag on US GDP,&#8221; Dove wrote. 
In 2024, approximately 20.24 million Canadian tourists visited the U.S., making up over a quarter of international air travel. Mexico followed with around 17 million visitors. 
U.S. airlines have limited exposure to Canadian transborder markets, with United Airlines Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/UAL#NASDAQ">UAL</a>) having the highest at 1.4% of total flights. 
Carriers like Allegiant Travel Co. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ALGT#NASDAQ">ALGT</a>), Frontier, Southwest, and Spirit do not operate direct routes to Canada but may still feel demand softness in border cities, said the analyst. 
Also Read: <a href="https://www.benzinga.com/25/04/44589543/ford-trucks-hit-20-year-sales-high-as-ev-demand-climbs">Ford Q1 US Auto Sales Dip 1.3%: Details</a>
Allegiant, for instance, serves U.S. border cities that rely on Canadian travelers, with these routes comprising 1.6% of its 2024 flights.
Florida, California, Nevada, New York, and Texas are top destinations for Canadian tourists, meaning airlines operating heavily in these states could see an impact. 
JetBlue Airways Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JBLU#NASDAQ">JBLU</a>) has 58% of its capacity in key Canadian tourist cities, though a large portion of this is tied to New York, which only accounts for 13% of Canadian visits.
United and Allegiant have recently reported weaker demand from Canadian travelers. In response, United accelerated the retirement of 21 aircraft. 
The overall U.S.-Canada air travel market has seen route cuts at twice the rate of non-Canada flights, with 210 basis points of Canadian growth being slashed since January. 
Allegiant, despite not flying to Canada, reduced flights from Plattsburgh by 20 percentage points due to weaker demand from Canadian travelers, significantly more than the 4.4-point cut to its broader network. However, reductions were smaller in Bellingham and Niagara Falls, at 1.7 and 2.0 points, respectively.
U.S. hotel corporations have minimal exposure to Canadian tourism, despite the high volume of Canadian visitors. Hyatt Hotels Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/H#NYSE">H</a>) has the highest exposure among major hotel chains, while Wyndham Hotels &amp; Resorts Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WH#NYSE">WH</a>) and Choice Hotels International Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CHH#NYSE">CHH</a>) are the least affected due to their reliance on drive-to bookings.
Wyndham sees only 1% of its U.S. room bookings from Canadian travelers. Over 90% of guests drive to its hotels. Similarly, Marriott International Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MAR#NASDAQ">MAR</a>) estimates just 1% of U.S. room nights come from Canada. Some 96% of its bookings originate from domestic travelers.
Hyatt, with a stronger focus on luxury and resort properties, derives approximately 2% of its U.S. bookings from Canadian visitors. Hilton Worldwide Holdings Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HLT#NYSE">HLT</a>) also sees 1-1.5% of its U.S. room nights booked by Canadians, with 2% of its total rooms located in Canada.
Norwegian Cruise Line Holdings Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NCLH#NYSE">NCLH</a>) has the highest exposure to Canadian tourism among cruise operators, though overall reliance remains low. 
An estimated 5% of NCLH's revenue comes from Canadian travelers, followed by Royal Caribbean Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RCL#NYSE">RCL</a>) at 4% and Carnival Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CCL#NYSE">CCL</a>) at 3.5%.
Hotel companies rely more heavily on domestic and business travelers, while cruise lines see slightly higher engagement from Canadian tourists.
Florida saw approximately 6 million international visitors in 2023, with around 1.3 million coming from Canada. Theme parks with high international attendance could feel the impact of a decline in Canadian visitors.
Comcast Corp.&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CMCSA#NASDAQ">CMCSA</a>) Universal theme parks are the most exposed, with around 30% of attendance coming from international tourists. 
Walt Disney Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIS#NYSE">DIS</a>) typically sees international visitors comprise between the high teens to low 20% of total guests, while United Parks &amp; Resorts Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PRKS#NYSE">PRKS</a>) has lower exposure at around 7%, down from pre-pandemic double-digit levels.
The financial impact extends beyond ticket sales. International visitors tend to spend more on park-related purchases, including hotel stays and in-park amenities, Dove said.
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Image: Shutterstock

ALGT

Tariff Tensions Could Hurt US GDP As Canadian Tourism Cools: Goldman Sachs

Comments

Choice Hotels Intl

Notizie

PARTNER/COLLABORATORE

BENZINGA NEL MONDO