Stifel's Price Target Increase#
Stifel has raised its price target for PebbleBrook Hotel Trust (NYSE:PEB) from $14.50 to $16.25, while maintaining a Buy rating on the stock. Currently, the stock trades at $14.11, close to its 52-week high of $14.33, reflecting a significant 55% gain over the past year.
Strong Q1 Performance#
In the first quarter of 2026, PebbleBrook reported adjusted funds from operations (AFFO) of $0.32 per share. This figure surpassed Stifel’s estimate by $0.07 and exceeded the overall market consensus by $0.10. The results also exceeded the company's own guidance range of $0.19 to $0.23 per share.
Adjusted EBITDA Beats Estimates#
The company achieved an adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of $73.3 million for the quarter, significantly higher than the Street estimate of $64.2 million. PebbleBrook had previously guided for adjusted EBITDA in the range of $60.0 million to $64.0 million, indicating strong revenue growth and improved profit margins.
Recent Developments and Future Outlook#
In recent news, Pebblebrook's fourth-quarter 2025 earnings also exceeded expectations, with an earnings per share (EPS) of -0.23, better than the anticipated -0.31. However, the company did report a revenue shortfall of $320.96 million against a forecast of $342.73 million. Looking ahead, Stifel has provided a fiscal year 2026 outlook with adjusted funds from operations per share expected to be between $1.50 and $1.62. Other firms, such as Truist Securities and Ladenburg Thalmann, have also adjusted their price targets and ratings for Pebblebrook, reflecting ongoing strategic changes and a positive financial outlook.