RBC Raises Pebblebrook Hotel Trust Target

Pebblebrook Hotel Trust shares were barely higher Monday morning after RBC Capital analysts raised their price target to $35 from $33 per share while reiterating an outperform rating on the stock. The broker also said it revised its FY funds from operations estimates on the real estate investment trust to reflect the sale of a parking garage at the Revere Hotel in Boston for $95 million, equal to an EBITDA multiple of 23.5x.

RBC Capital now expects FY18 FFO of $2.63 per share, down from $2.70 per share and FY19 FFO of $2.84 per share, down from $2.91 per share to reflect “lower share repurchases through ’19 and lower EBITDA from the sale of the Revere Hotel parking garage.” In addition, the broker justified the $35 price target citing the company’s proven ability “to monetize its assets at values substantially above public market levels.”

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