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INN: Higher Net Profit Margin Will Drive Shares Higher In 2025

INN: Net Profit Margin Improvement And Share Buyback Will Support Future Upside

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INN
AnalystConsensusTarget
Not Invested
Published 10 Nov 2024

Update shared on 16 Dec 2025

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AnalystConsensusTarget's Fair Value
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1Y
-29.8%
7D
-6.6%

Analysts have modestly raised their price target on Summit Hotel Properties to 6.13 dollars per share. This reflects improved expectations for revenue growth and profit margins, despite a slightly higher discount rate and a marginally lower assumed future valuation multiple.

What's in the News

  • Completed repurchase of 3,585,179 shares (equal to 3.28% of outstanding shares) for a total of 15.4 million dollars under the April 30, 2025 authorization (company buyback update)

Valuation Changes

  • The fair value estimate remains unchanged at 6.13 dollars per share, indicating no revision to the intrinsic value assessment.
  • The discount rate has risen slightly from 11.41 percent to approximately 11.49 percent, reflecting a modest increase in perceived risk or return requirements.
  • The revenue growth assumption has increased moderately from about 1.68 percent to approximately 1.99 percent, signaling improved expectations for top-line expansion.
  • The net profit margin has risen slightly from roughly 5.56 percent to about 5.79 percent, pointing to a modestly stronger profitability outlook.
  • The future P/E multiple has declined slightly from about 18.93 times to roughly 18.04 times, implying a somewhat more conservative terminal valuation.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.