Key Takeaways:
- Choice Hotels International Inc. (CHH, Financial) reported a record first-quarter EBITDA, yet missed on both EPS and revenue expectations.
- Analyst forecasts indicate potential upside for CHH with a one-year price target average of $137.32, suggesting a 9.17% increase.
- GuruFocus estimates a significant upside potential for CHH, projecting a GF Value of $154.82.
Financial Performance Overview
Choice Hotels International Inc. (CHH) released its first-quarter 2025 financial results, showing a non-GAAP EPS of $1.34, which fell short of market expectations by $0.03. Meanwhile, the company's revenue reached $332.86 million, missing analyst estimates by $13.77 million. Nonetheless, they delivered a record first-quarter EBITDA of $129.6 million—an increase of 4% from the previous year. Additionally, the Global Net Rooms System Size experienced growth of 2.8%, with the domestic extended stay segment advancing by an impressive 10.8%.
Analyst Predictions and Market Outlook
According to the projections from 14 analysts, the one-year average price target for Choice Hotels International Inc. (CHH, Financial) stands at $137.32. This projection ranges between a high estimate of $160.00 and a low of $111.00. The average target suggests a potential upside of 9.17% from the current market price of $125.78. To explore more detailed estimates, refer to the Choice Hotels International Inc. (CHH) Forecast page.
The consensus recommendation from 15 brokerage firms rates Choice Hotels International Inc. (CHH, Financial) at 2.7, indicating a "Hold" status. This brokerage rating utilizes a scale from 1 to 5, where 1 is a Strong Buy and 5 is a Sell.
Valuation Insights from GuruFocus
GuruFocus offers an estimated GF Value of $154.82 for Choice Hotels International Inc. (CHH, Financial) over the next year, projecting a substantial upside of 23.09% from its current price of $125.78. The GF Value is an indicator of the fair market value at which the stock should trade; it's derived from historical multiples, past business growth, and the company's anticipated future performance. Further detailed data is available on the Choice Hotels International Inc. (CHH) Summary page.
