Thursday, FBR Capital Markets upgraded Choice Hotels International Inc. (CHH) shares to Outperform from Market Perform and increased its price target to $32 from $29. The brokerage upgraded lodging sector to Overweight from Market Weight.
Analyst Patrick Scholes said that after significantly underperforming the group so far this year, his upgrade is primarily based on attractive relative valuation in light of recent signs of life in the transient/leisure customer.
Additionally, the analyst believes CHH has a greater likelihood than peers of earnings growth in 2010 and less risk of consensus estimate cuts. The analyst also believes that the company has seen an uptick in conversion activity during the past two months and that this should provide above-industry unit growth over at least the next 18 months.
Currently, CHH is up $1.84 or 7.54% and trading at $26.25.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.