On Thursday, Truist Securities revised its stock price target for Host Hotels & Resorts Inc. (NASDAQ:HST), a lodging real estate investment trust, to $23.00, down from the previous $24.00, while keeping a Hold rating on the stock. The adjustment comes as the firm updates its earnings projections for the company.
The firm's analyst has increased the estimated Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for Host Hotels for the year 2024 to $1,671 million, up from the prior estimate of $1,636 million. Additionally, the Adjusted Funds From Operations (AFFO) per share for 2024 is now expected to be $2.03, an increase from the earlier forecast of $1.98.
Looking ahead to 2025, Truist Securities also raised its EBITDA projection for Host Hotels to $1,684 million from the prior $1,664 million estimate. The AFFO per share for 2025 is anticipated to reach $2.00, up from the previous projection of $1.92.
The new stock price target of $23 is derived from applying an unchanged multiple of 11.5 times to the company's expected 2025 EBITDA. This represents a shift in the firm's valuation basis from the 2024 EBITDA to that of 2025. The analyst notes that Host Hotels' stock is currently trading at a multiple of 9.4 times and 9.3 times the firm's 2024 and 2025 EBITDA estimates, respectively.
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