Longbow upgrades Choice Hotels with travel shifting to cars from planes - InvestingChannel

Longbow upgrades Choice Hotels with travel shifting to cars from planes

Longbow analyst Alton Stump upgraded Choice Hotels to Buy from Neutral with an $85 price target. The stock closed Friday up 86c to $71.26. Choice’s predominant leisure demand exposure and non-urban presence should enable the company to “weather the current environment” and outperform hotel peers, Stump tells investors in a research note. Choice, which stands to benefit from a potential long-term change in consumer travel behavior, should also recover faster once COVID-19 subsides, adds the analyst. Stump sees the company as attractively positioned with leisure travelers transitioning from air travel to automobiles and notes the shares are down 30% since his December 19, 2019, downgrade to Neutral.