Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Markets & Finance

Wachovia Cuts Felcor Lodging to 'Underperform'


Wachovia downgraded Felcor Lodging (FCH) to underperform from market perform.

Analyst Jeffrey Donnelly says expectations for flat revenue per available room (RevPAR) growth, continued gross margin declines, and management's decision to cease paying a dividend and aggressively dispose of noncore assets could place signficant downward pressure on earnings per share and valuation.

He further cut the $1.74 2003 funds from operations estimate to $1.23. Based upon 2003 the earnings estimate (before interest, taxes, depreciation and amortization) of $270 million to $280 million, Donnelly estimates the fair value of shares to be in the $6.50 to $8.50 range.


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus