Has Barclays Lost Faith in LaSalle Hotel (NYSE:LHO) After Recent Downgrade


LaSalle Hotel (NYSE:LHO) Receives a Downgrade

In recent note revealed to investors on Friday morning, Barclays cut LaSalle Hotel (NYSE:LHO) shares to a Underweight rating from the previous Equal Weight. Barclays now has a $29.0 price target on the stock. This price target implies a possible upside, according to the firm, of 10.69% from previous stock close of the stock.

From a total of 17 analysts covering LaSalle Hotel Properties (NYSE:LHO) stock, 0 rate it a ”Buy”, 0 a “Sell”, and 0 a ”Hold”. This means that NaN of the ratings are positive. The highest target price is $37 while the lowest target price is $23.5. The mean of all analyst targets is $31.24 with a 29.62% above today’s ($25.15) stock price. LaSalle Hotel Properties was the topic of 27 analyst reports since July 21, 2015 according to the firm StockzIntelligence Inc. Citigroup downgraded shares on December 15 to “Neutral” rating. Morgan Stanley downgraded shares to “Equalweight” rating and $30 target share price in a report from an October 26. Janney Capital initiated LHO stock in a recent report from December 2 with “Neutral” rating. Evercore downgraded the rating on October 26. Evercore has a “Hold” rating and a $30 price target on shares. Finally, Barclays Capital maintained the stock with “Equal Weight” rating in a report issued on an October 26.

Approximately 2.09 million shares of stock traded hands or 69.92% up from the average. LaSalle Hotel Properties (NYSE:LHO) has declined 30.17% since May 15, 2015 and is downtrending. It has underperformed by 26.36% the S&P500.

The overall sentiment of institutions has decreased to 0.98 in Q2 2015. Its down 0.17, from 1.15 in 2015Q2. The ratio fall, as 36 institutions have sold all the shares of LaSalle Hotel Properties that they owned while 80 funds have taken shares off the table. 23 funds have purchased shares for the first time while 91 added to their positions. These institutions now hold 107.58 million shares or 10.30% less than the 119.93 million shares they owned in 2015Q2.

The Fund Lasalle Investment Management Securities Llc currently is holding shares equating to 2.28% of its total portfolio in LaSalle Hotel Properties representing a total of 6.83 million shares. Another fund,Lombardia Capital Partners Llc, is holding a total of 1.49 million shares equating to 2.02% of their holdings. Additionally, Falcon Point Capital Llc has a 156,196 share stake in LaSalle Hotel Properties which represents 1.59% of their total portfolio. The Fund, Kempen Capital Management N.V., based out of Netherlands, has also built up a stake in the stock, which represents a total of 1.45% of their total portfolio. Finally Cornerstone Real Estate Advisers Llc, a fund which is based in the state of Connecticut reported a total holdings of 88,412 shares.

Lasalle Hotel Properties is a self-managed and self-administered real estate investment trust . The company has a market cap of $2.96 billion. The Firm buys, owns, redevelops and leases upscale and luxury full-service hotels located in convention, resort and urban business markets. It has 22.99 P/E ratio. As of December 31, 2014, the Company owned interests in 45 hotels with approximately 11,300 guest rooms located in 10 states and the District of Columbia.

According to Zacks Investment Research, “Lasalle Hotel Properties, which intends to operate as a real estate investment trust for federal income tax purposes, has been formed to own hotel properties and to continue and expand the hotel investment activities of LaSalle Partners Incorporated and certain of its affiliates collectively, LaSalle. LaSalle is an institutionally respected real estate services and investment firm which has extensive experience in the acquisition, investment management, finance, development and disposition of hotel properties.”