Starwood Hotels & Resorts "market outperform;" target price raised

09/28/04 - JMP Securities

NEW YORK, September 28 (newratings.com) – Analysts at JMP Securities reiterate their "market outperform" rating on Starwood Hotels & Resorts (HOT), while raising their estimates for the company. The target price has been raised from $50 to $52.

In a research note published this morning, the analysts mention that their survey reveals that corporate hotel rates are likely to increase by 3%-5% in 2005. An increase in corporate hotel rates would boost overall pricing, the analysts add. JMP Securities expects Starwood Hotels & Resorts to benefit from the recovery in transient business travel. The company’s timeshare business is also witnessing a robust performance, the analysts say. The EPS estimate for 2005 has been raised from $1.80 to $1.90.