Boston, MA 10/16/2014 (wallstreetpr) – Two brokerages have decided to upgrade their ratings on the shares of Host Hotels and Resorts Inc (NYSE:HST) within two days time. The move comes two weeks ahead of the company’s plan to announce its third quarter financial results.
Rating of Stock
On Thursday, FBR Capital has lifted its rating on Host Hotels and Resorts Inc (NYSE:HST) shares to a rating of Outperform from Market Perform rated by it previously. The move comes on the heels of another brokerage making a similar initiative.
Yesterday, Barclays analysts raised their rating on the shares of the company to Overweight rating from Equal Weight rating on valuation.
However, both the brokerages are currently having a price objective of $24.00 a share. FBR lifted it from $22.00 projected by it earlier while Barclays increased its price objective from $23.00. It meant that there could be upside potential of over 14% from $20.6 level.
Recoup $25 Million
Both the brokerages action comes after the company announced on Tuesday that it would reverse the contingency loss of $69 million recorded earlier. It made a provision to cover any losses arising out of litigation associated with San Antonio Marriott Rivercenter Hotel.
Host Hotels said that on October 3 its litigation turned in its favor as the Supreme Court in Texas refused the motion for hearing again from Keystone-Texas Holding Corporation. It preceded with the overruling of a lower court’s $57.3 million order against Host Hotels and Resorts Inc (NYSE:HST) for interfering allegedly with a move to divest shopping mall and nearby land.
Now, the Supreme Court in Texas has given its final verdict, the company indicated that it would recoup $25 million escrow it has funded previously.
Conference Call
Host Hotels and Resorts Inc (NYSE:HST) is scheduled to announce its financial results for the third quarter on October 30 before the market opens. It will also hold a conference call on the same day at 10.00 a.m. ET. Its management would also discuss the business outlook for the rest of the current year.
