• J.P. Morgan upgrades rating on Choice Hotels

J.P. Morgan analyst Joseph Greff has upgraded his rating of Choice to "Neutral" from "Underweight" as the stock was trading near his year-end price target of $31 yesterday.

He told news wires that the hotel’s business model was "durable" because it is focusing on franchising with limited to no capital investment of its own.

But he warned Choice, which franchises Comfort Inn, Clarion and others, may have a slower recovery than its peers, given its limited growth plans, position in lower-priced hotels and smaller international presence. As a result, earnings estimates were unchanged.


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