Sunstone Hotel Investors Receives Upgrade from Evercore ISI Group

Fintel reports that on May 16, 2025, Evercore ISI Group upgraded their outlook for Sunstone Hotel Investors (NYSE:SHO) from In-Line to Outperform.

Analyst Price Forecast Implies Significant Upside

As of May 6, 2025, the average one-year price target for Sunstone Hotel Investors is $10.29 per share. Projections range from a low of $7.07 to a high of $12.60. This average price target indicates a potential increase of 16.96% from the latest reported closing price of $8.80 per share.

Revenue and Earnings Projections

The projected annual revenue for Sunstone Hotel Investors stands at $1,016 million, reflecting an increase of 10.11%. Additionally, the projected annual non-GAAP EPS is estimated at 0.23.

Fund Sentiment Analysis

Currently, 551 funds or institutions are reporting positions in Sunstone Hotel Investors, an increase of 10 owners or 1.85% in the last quarter. The average portfolio weight of all funds dedicated to SHO is 0.17%, up by 1.32%. Total shares owned by institutions rose in the last three months by 0.90% to 258,275,000 shares.

The put/call ratio for SHO is 0.03, suggesting a bullish outlook among investors.

Shareholder Movements and Allocations

IJR – iShares Core S&P Small-Cap ETF holds 12,917,000 shares, representing 6.50% ownership of the company. In its previous filing, the firm reported owning 12,970,000 shares, indicating a decrease of 0.40%. Nonetheless, the firm increased its portfolio allocation in SHO by 12.44% over the past quarter.

Principal Financial Group holds 8,793,000 shares, representing 4.42% ownership. Previously, the firm owned 8,356,000 shares, marking an increase of 4.97%. However, it decreased its portfolio allocation in SHO by 55.74% in the last quarter.

Blackstone Group remains steady with 8,645,000 shares, also representing 4.35% ownership, showing no change this quarter.

VGSIX – Vanguard Real Estate Index Fund Investor Shares holds 7,459,000 shares, accounting for 3.75% ownership. In the last filing, the firm reported 7,624,000 shares, a decrease of 2.21%. Despite this, it increased its portfolio allocation in SHO by 15.19% over the quarter.

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 6,408,000 shares, which represents 3.22% ownership. Their previous filing indicated 6,536,000 shares, a decrease of 1.99%, yet they increased their portfolio allocation in SHO by 10.85% in the last quarter.

Company Overview

Sunstone Hotel Investors Background Information
(This description is provided by the company.)

Sunstone Hotel Investors, Inc. operates as a lodging real estate investment trust (REIT). As per this report, the company has interests in 17 hotels comprising 9,017 rooms. Sunstone’s primary business focuses on acquiring, owning, asset management, and renovating or repositioning hotels deemed to be Long-Term Relevant Real Estate®, the majority of which operate under recognized brands like Marriott, Hilton, and Hyatt.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.