Ashford Hospitality Trust “underperform,” target price reduced - update

Ashford Hospitality Trust “underperform,” target price reduced - update 5:00p.m. - RBC Capital Markets NEW YORK, July 15 (newratings.com) – Analyst Mike Salinsky of RBC Capital Markets maintains his "underperform" rating on Ashford Hospitality Trust Inc (AHT), while reducing his estimates for the company. The 12-month target price has been reduced from $5.50 to $3. In a research note published this morning, the analyst mentions that there is risk to the company’s dividend yield, which is currently more than 20%, in view of weakening fundamentals. The analyst expresses his concern regarding Ashford Hospitality Trust’s heightened leverage levels. The reported FFO per share estimates for 2008 and 2009 have been reduced from $1.30 to $1.24 and from $1.37 to $1.16, respectively, reflecting a deteriorating lodging environment and... [read full story]