Morgan Stanley Increases Choice Hotels International (NYSE:CHH) Price Target to $87.00

Key Points

• Morgan Stanley raised its price target on Choice Hotels (NYSE:CHH) from $83 to $87 but kept an underweight rating; the $87 target implies roughly a 23% downside from the stock's recent ~$113 price.
• Analyst coverage is mixed (2 Buy, 8 Hold, 4 Sell) with a MarketBeat consensus rating of Reduce and an average target price of $108.42.
• Choice beat quarterly estimates (EPS $1.60 vs. $1.56 est.; revenue $390.15M vs. $369.26M) and issued FY2026 guidance of 6.920–7.140 EPS (analysts expect ~7.07); insiders have been net sellers recently, offloading about 10,283 shares in the last 90 days.

Choice Hotels International (NYSE:CHH - Get Free Report) had its target price hoisted by analysts at Morgan Stanley from $83.00 to $87.00 in a research report issued on Friday,Benzinga reports. The brokerage currently has an "underweight" rating on the stock. Morgan Stanley's price objective indicates a potential downside of 23.08% from the company's current price.

A number of other equities analysts have also commented on CHH. Argus reaffirmed a "hold" rating on shares of Choice Hotels International in a report on Tuesday, December 16th. Weiss Ratings upgraded shares of Choice Hotels International from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Monday, February 9th. Truist Financial raised their price objective on shares of Choice Hotels International from $126.00 to $129.00 and gave the company a "buy" rating in a research report on Thursday, March 26th. The Goldman Sachs Group raised their price objective on shares of Choice Hotels International from $90.00 to $100.00 and gave the company a "neutral" rating in a research report on Tuesday, February 3rd. Finally, Deutsche Bank Aktiengesellschaft restated a "hold" rating and issued a $119.00 price objective on shares of Choice Hotels International in a research report on Friday, February 20th. Two equities research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and four have issued a Sell rating to the company. Based on data from MarketBeat, Choice Hotels International currently has a consensus rating of "Reduce" and an average target price of $108.42.

Choice Hotels International Stock Performance

NYSE:CHH opened at $113.11 on Friday. The company has a debt-to-equity ratio of 10.52, a current ratio of 0.87 and a quick ratio of 0.87. The business has a fifty day simple moving average of $104.09 and a two-hundred day simple moving average of $100.27. Choice Hotels International has a 1 year low of $84.04 and a 1 year high of $136.45. The company has a market capitalization of $5.20 billion, a P/E ratio of 14.28, a P/E/G ratio of 4.78 and a beta of 0.74.

Choice Hotels International (NYSE:CHH - Get Free Report) last posted its quarterly earnings results on Thursday, February 19th. The company reported $1.60 EPS for the quarter, topping analysts' consensus estimates of $1.56 by $0.04. Choice Hotels International had a return on equity of 541.07% and a net margin of 23.17%.The firm had revenue of $390.15 million during the quarter, compared to analyst estimates of $369.26 million. During the same period last year, the company earned $1.55 earnings per share. The business's revenue for the quarter was up .0% on a year-over-year basis. Choice Hotels International has set its FY 2026 guidance at 6.920-7.140 EPS. On average, analysts expect that Choice Hotels International will post 7.07 earnings per share for the current year.

Insider Activity

In related news, CFO Scott E. Oaksmith sold 1,603 shares of the business's stock in a transaction dated Wednesday, March 18th. The stock was sold at an average price of $100.00, for a total transaction of $160,300.00. Following the completion of the transaction, the chief financial officer directly owned 37,172 shares in the company, valued at $3,717,200. The trade was a 4.13% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, SVP Simone Wu sold 8,080 shares of the business's stock in a transaction dated Monday, February 2nd. The stock was sold at an average price of $101.56, for a total value of $820,604.80. Following the transaction, the senior vice president owned 48,803 shares of the company's stock, valued at approximately $4,956,432.68. The trade was a 14.20% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 10,283 shares of company stock valued at $1,040,947. 23.78% of the stock is owned by company insiders.

Hedge Funds Weigh In On Choice Hotels International

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Eurizon Capital SGR S.p.A. purchased a new position in Choice Hotels International during the fourth quarter worth about $27,000. Eagle Bay Advisors LLC bought a new stake in Choice Hotels International during the fourth quarter worth about $28,000. Quarry LP bought a new stake in Choice Hotels International during the third quarter worth about $38,000. UMB Bank n.a. lifted its stake in Choice Hotels International by 6,416.7% during the fourth quarter. UMB Bank n.a. now owns 391 shares of the company's stock worth $37,000 after purchasing an additional 385 shares during the last quarter. Finally, Fifth Third Bancorp lifted its stake in Choice Hotels International by 77.4% during the fourth quarter. Fifth Third Bancorp now owns 392 shares of the company's stock worth $37,000 after purchasing an additional 171 shares during the last quarter. 65.57% of the stock is currently owned by hedge funds and other institutional investors.

About Choice Hotels International

Choice Hotels International, Inc is a hospitality franchisor specializing in the development and support of lodging brands across the economy, midscale and upscale segments. Through a network of franchisees, Choice Hotels supplies proprietary reservation and distribution systems, comprehensive marketing programs, and operational support services. The company's core activities include brand management, franchise development, and technology-driven revenue optimization tools designed to enhance guest acquisition and retention for its partners.

Founded in 1939 as Quality Courts United, the company rebranded to Choice Hotels International in 1982 to reflect its expanding brand portfolio and global ambitions.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.