BMO Capital Markets initiated coverage on Chesapeake Lodging Trust (NYSE: CHSP) with an Outperform rating and a $25.00 price target. BMO Capital Markets noted, “Despite its short life as a public company, management has deep roots in the public lodging REIT sector and has smoothly assembled a portfolio of primarily upper-upscale hotels in high-barrier markets. The company acquired $234 million of hotels in 2012 and has another $76 million in the pipeline, increasing the portfolio size and improving liquidity through new equity used for financing the investments. We are initiating with an Outperform rating as we believe CHSP’s high-growth portfolio deserves a premium valuation.” Chesapeake Lodging Trust closed at $21.01 on Monday.
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Tags: BMO Capital Markets
Posted in: Analyst Color, Initiation, Pre-Market Outlook, Analyst Ratings