Update shared on 26 Sep 2025
Fair value Increased 22%Service Properties Trust’s analyst price target has increased from $2.25 to $2.75, primarily due to improved liquidity and debt maturity management following a recent zero-coupon debt issuance, though upside remains constrained by net lease challenges and substantial longer-term debt maturities.
Analyst Commentary
- Recent zero-coupon debt issuance has reduced near-term liquidity risk and should bring the company back into compliance with debt covenants.
- The new debt issue enables the company to repay all 2026 unsecured debt maturities early, improving the overall debt maturity profile.
- Bearish analysts contend that anticipated positive impacts from company hotel asset sales are already reflected in the current share price.
- Moderate earnings growth is expected following property renovations, with ongoing headwinds in the net lease segment limiting upside.
- Substantial debt maturities totaling $3.1 billion through 2029 continue to weigh on the outlook and risk profile.
Valuation Changes
Summary of Valuation Changes for Service Properties Trust
- The Consensus Analyst Price Target has significantly risen from $2.25 to $2.75.
- The Future P/E for Service Properties Trust has significantly risen from 9.25x to 11.30x.
- The Consensus Revenue Growth forecasts for Service Properties Trust remained effectively unchanged, at -5.8% per annum.
Disclaimer
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