Red Lion Hotels "outperform," estimates reduced

11/09/07 - Robert W. Baird

NEW YORK, November 9 (newratings.com) - Analysts at Robert W Baird maintain their "outperform" rating on Red Lion Hotels Corporation (RLH), while reducing their estimates for the company. The target price is set to $14.

In a research note published this morning, the analysts mention that the company has posted its 3Q EPS short of the estimates and ahead of the consensus. Red Lion Hotels has raised its RevPAR guidance for 2007 from 9%-11% to 11%-12%. The company’s RevPAR rose 9.5% and operating margins expanded by 299 bps in the quarter, Robert W Baird adds. The EPS estimate for 2007 has been reduced from 0.27 to 0.26.