Choice Hotels International Inc
CHH: XNYS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$465.00 | Kndjqc | Jfmrrzcvg |
Choice Hotels Earnings: Deal With Wyndham Remains Uncertain, but Pipeline Development Continues
We plan to lower our $130 fair value estimate on narrow-moat Choice Hotels by a low-single-digit percentage to account for slower revenue growth in 2023. Timing of a resolution or progress of Choice’s unsolicited bid for narrow-moat Wyndham remains uncertain, which we think could present some overhang to shares of both hoteliers. It appears that Choice is ready to engage, while Wyndham wants confirmation on its concerns, including breakup fees, leverage, and equity mix.