Wells Fargo analyst Dori Kesten resumed coverage of DiamondRock with a Market Perform and a $9.50 price target. The analyst would expect the company to be active in repurchasing shares in the second half of the year given that Danaher trades at what management estimates to be a 30% discount to NAV, its leverage implies about $300M in investment capacity, and its outlook for 2020 is relatively positive based on its group bookings and exposure to markets with strong convention calendars. That said, the company is trading at a 0.3-times turn premium to the lodging REITs' 2020 consensus EV/EBITDA, after having traded at a 0.7-times turn discount over the last 3 years, leading Kesten to believe the shares are fairly valued.