Assessing Sunstone Hotel Investors (SHO) Valuation After Baird Downgrade And Steady Dividend Yield

Simply Wall St.

Jan 14

Baird’s downgrade of Sunstone Hotel Investors (SHO) from Outperform to Neutral puts fresh attention on the REIT’s positioning versus peers, particularly given its consistent dividend history and ...

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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAssessing Sunstone Hotel Investors (SHO) Valuation After Baird Downgrade And Steady Dividend Yield\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-01-14 16:19 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/real-estate/nyse-sho/sunstone-hotel-investors/news/assessing-sunstone-hotel-investors-sho-valuation-after-baird><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Baird’s downgrade of Sunstone Hotel Investors (SHO) from Outperform to Neutral puts fresh attention on the REIT’s positioning versus peers, particularly given its consistent dividend history and ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/real-estate/nyse-sho/sunstone-hotel-investors/news/assessing-sunstone-hotel-investors-sho-valuation-after-baird\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"SHO-I","symbol_name":"Sunstone Hotel Investors Inc","start_time":0,"source_url":"https://simplywall.st/stocks/us/real-estate/nyse-sho/sunstone-hotel-investors/news/assessing-sunstone-hotel-investors-sho-valuation-after-baird","article_id":"2603697729","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/9621070-choice2-main-header/1585186899331"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/real-estate/nyse-sho/sunstone-hotel-investors/news/assessing-sunstone-hotel-investors-sho-valuation-after-baird","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2603697729","pubTimestamp":1768378751,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Baird’s downgrade of Sunstone Hotel Investors (SHO) from Outperform to Neutral puts fresh attention on the REIT’s positioning versus peers, particularly given its consistent dividend history and current 3.82% yield.\nSee our latest analysis for Sunstone Hotel Investors.\nThe Baird downgrade comes after a mixed run for the stock, with a 1-day share price return of 1.08% and a 30-day share price return of 1.30%, set against a 1-year total shareholder return decline of 16.11%. Taken together, this...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":["rate"],"viewcount":null,"language":"en","relate_stocks":{"SHO-I":"Sunstone Hotel Investors Inc","SHO.AU":"SPORTSHERO LIMITED"},"translate_title":"贝尔德降级后评估太阳石酒店投资者(SHO)的估值和稳定的股息收益率","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"SHO.AU":1.5,"SHO-I":1.5},"content_text":"Baird’s downgrade of Sunstone Hotel Investors (SHO) from Outperform to Neutral puts fresh attention on the REIT’s positioning versus peers, particularly given its consistent dividend history and current 3.82% yield. See our latest analysis for $Sunstone Hotel Investors(SHO-I)$. The Baird downgrade comes after a mixed run for the stock, with a 1-day share price return of 1.08% and a 30-day share price return of 1.30%, set against a 1-year total shareholder return decline of 16.11%. Taken together, this suggests short-term momentum is trying to build while longer-term returns have been weaker as investors reassess Sunstone Hotel Investors’ risk and income profile. If this kind of reset has you thinking about where else capital might work harder, it could be worth scanning fast growing stocks with high insider ownership as a starting point for fresh ideas. With the shares trading at $9.35 against a $10.00 analyst target and an estimated intrinsic discount of about 37%, the key question is whether this signals mispricing or if the market already reflects Sunstone’s future prospects. AdvertisementMost Popular Narrative: 3% Undervalued With Sunstone Hotel Investors last closing at $9.35 against a narrative fair value of $9.64, the current price sits just below that central estimate and puts the focus squarely on the earnings and cash flow assumptions behind it. The normalization and recovery of key leisure markets such as Maui (Wailea/Kaanapali) and continued asset re-investment (for example, Andaz Miami Beach opening, renovations in San Antonio and San Diego) position the portfolio for outsized earnings growth as destination travel resumes and airlift increases, benefiting both top line and EBITDA. Read the complete narrative. Analysts are baking in steady revenue gains, fatter margins, and a richer profit base, all discounted at 8.53%. Curious which earnings and share count assumptions really drive that fair value? Result: Fair Value of $9.64 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, the story can change quickly if high capital spending on renovations continues to squeeze free cash flow or if key markets like Maui and Washington, D.C. remain sluggish for longer. Find out about the key risks to this Sunstone Hotel Investors narrative. Another View: What The Sales Multiple Is Saying While the narrative fair value suggests Sunstone Hotel Investors may be slightly undervalued, the current P/S ratio of 1.9x tells a more cautious story. It is higher than the peer average at 1.2x, yet sits below a fair ratio of 2.3x that the market could move toward over time. In practice, that gap hints at limited room for error, since the stock already trades richer than peers even though recent returns, profit margins, and one off items have been challenging. The question for you is simple: do you think the business can grow into this pricing without more setbacks? See what the numbers say about this price — find out in our valuation breakdown. NYSE:SHO P/S Ratio as at Jan 2026 Build Your Own Sunstone Hotel Investors Narrative If you see the numbers differently or prefer to test your own assumptions, you can build a custom view in just a few minutes, starting with Do it your way. A great starting point for your Sunstone Hotel Investors research is our analysis highlighting 2 key rewards and 4 important warning signs that could impact your investment decision. Ready For More Investment Ideas? If Sunstone has you thinking more broadly about where to put your next dollar, do not stop here, your next strong idea could be just one screen away.  Spot potential value plays by scanning these 886 undervalued stocks based on cash flows that may be pricing in more pessimism than the underlying cash flows suggest. Chase growth themes by checking out these 25 AI penny stocks positioned around artificial intelligence trends that many investors are watching closely. Target reliable portfolio income by reviewing these 13 dividend stocks with yields > 3% that offer yields above 3% with an eye on ongoing payouts.   This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"}}}