Barclays Starts Apple Hospitality REIT (APLE) at Overweight

Barclays analyst Richard Hightower initiates coverage on Apple Hospitality REIT (NYSE: APLE) with a Overweight rating and a price target of $14.00.

The analyst comments: "We initiate on APLE at Overweight with a 12-month price target of $14. Despite recent operational headwinds and share price underperformance versus peers, we believe APLE to be a high-quality company that has produced solid long-term total returns for shareholders with far lower risk than several peers. We appreciate that APLE has a clear, definable strategy of owning a diversified portfolio of select-service hotels, which enjoy a simple business model and high absolute operating margins. Although we acknowledge that select-service-oriented chain scales have underperformed other hotel categories over the past couple of years, we believe revenue and expense trends are generally moving in a better direction. (In part out of conservatism, we are below-Consensus EBITDA and FFO/sh for APLE in 2026). Additionally, we believe that investors benefit from APLE's low-leverage balance sheet, high capex efficiency, and general skill in capital allocation."

For an analyst ratings summary and ratings history on Apple Hospitality REIT click here. For more ratings news on Apple Hospitality REIT click here.

Shares of Apple Hospitality REIT closed at $11.95 yesterday.

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