Deutsche Bank reported on Thursday that they see hospitality company, Starwood Hotels & Resorts Worldwide, Inc(HOT) as top pick in 2013.
Lead competitors of Starwood Hotels including Marriott(MAR) and Wyndham Worldwide(WYN) both saw significant increases YTD, and analysts see the hotel industry having a successful year in 2013. Although many of these companies have seen recent increases, analysts at Deutsche Bank see Starwood being their top pick in 2013.
The firm currently has a “Buy” rating on HOT with a price target of $61. This price target suggests a 14% increase from the stock’s current price of $52.52.
An analyst from the firm commented, “despite an uninspiring macroeconomic environment in 2012, it’s been a solid year for lodging stocks and lodging fundamentals have held up nicely following a strong 2011 as the sector continues to benefit from the meaningful supply/demand disconnect. As we look ahead to 2013, we have a largely favorable view and believe RevPAR growth expectations remain reasonable despite significant macro ambiguity, most notably around the Fiscal Cliff issues.”
Starwood Hotels shares were up 41 cents, or 0.73% during Thursday morning trading. The stock is up 18% YTD.
The Bottom Line
Shares of Starwood Hotels (HOT) have a 2.22% dividend yield, based on last night’s closing stock price of $56.39. The stock has technical support in the $50-$52 price area. If the shares can firm up, we see overhead resistance around the $58-$61 price levels.
Starwood Hotels & Resorts Worldwide, Inc(HOT) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.
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