Analysts Monitor Asset Recovery and Market Exposure at Sunstone Hotel Investors, Inc. (SHO)

We recently compiled a list of the 12 Cheap Small-Cap Stocks to Invest In Before the Next Breakout. The fifth stock on our list of best small-cap stocks is Sunstone Hotel Investors, Inc.

TheFly reported on January 12 that Baird analyst Michael Bellisario downgraded SHO from Outperform to Neutral, keeping the price target at $10. The downgrade reflects SHO’s “show me” status, as several of its assets and markets are still recovering. Additionally, the firm noted that SHO’s portfolio has less favorable exposure to FIFA World Cup markets, and a near-term acquisition is considered unlikely.

Separately, a week earlier, on January 5, Wells Fargo upgraded Sunstone Hotel Investors, Inc. (NYSE:SHO) to Overweight and raised the price target to $11 from $10. The firm expects SHO to lead lodging REITs in 2026 RevPAR growth, which is supported by a strong event calendar, softer comparisons, and an improving transaction market.

Sunstone Hotel Investors, Inc. (NYSE:SHO) is a U.S. lodging real estate investment trust (REIT) that acquires, owns, and actively manages upper‑upscale and luxury hotels in key urban and resort markets.

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