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Research Alert: CFRA Maintains Sell Opinion On Shares Of Park Hotels & Resorts Inc.

05/10/2021 10:39

02:35 PM EDT, 05/10/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We maintain our target price of $17, equal to 14.2x our 2022 FFO per share estimate, which we leave unchanged at $1.20 along with 2021 at a loss of ($1.00). PK reported a Q1 adjusted FFO per share loss of ($0.48) vs. $0.24, $0.04 above consensus. Revenue per available room (RevPAR) was $40.79 for Q1, down 70.0% compared to the same period a year ago but up 48.8% from the last quarter. Occupancy improved modestly to 37.4% in Q1, up from the 35.3% last quarter. PK opened a few more hotels, increasing the number of open hotels to 52 out of 59 or approximately 78% of total room count. While positive hotel adjusted EBITDA was achieved in March, PK doesn't expect to reach break-even at the corporate level until the second half of 2021. While we think PK is making prudent fundamental moves in reducing its cash burn rate and cutting capex to maintenance projects, we think shares are still pricing in too high of expectations for recovery in the business travel industry and therefore remain negative.