Jefferies analyst David Katz started Choice Hotels with a Hold rating and $85 price target. The company has been supporting the distribution of Cambria with up to $475M of capital, which is a departure from the normal capital-free growth through franchising, Katz tells investors in a research note. Further, its investments in the operating platform technology business continue to impact earnings and "challenge the purity of the business model otherwise," the analyst adds. However, Katz says Choice "is almost the purest play company in the hotel industry, given its preponderance of earnings from franchise fees."

Barclays lowered the firm's price target on Choice Hotels to $114 from $122 and keeps an Underweight rating on the shares as part of a Q1 lodging sector preview. The firm says the Easter shift dragged down March, making Q1 RevPAR beats less than likely. However, the analyst still expects more or less in-line EBITDA for the large caps.