MarketsMOJO Downgrades Howard Hotels to 'Sell' Due to Weak Financial Performance

Howard Hotels, a microcap company in the hotel, resort, and restaurant industry, has recently been downgraded to a 'Sell' by MarketsMOJO on October 11, 2024. This decision was based on several factors, including the company's weak long-term fundamental strength due to operating losses and poor long-term growth in net sales. Additionally, Howard Hotels has a weak ability to service its debt, with a poor EBIT to Interest ratio.
In terms of recent financial performance, the company reported flat results in June 2024, with its PBDIT(Q), PBT LESS OI(Q), and EPS(Q) all at their lowest levels. However, the stock is currently in a bullish range and has shown improvement in its technical trend since September 5, 2024, generating a return of 15.06% since then. Multiple technical factors, such as MACD, Bollinger Band, KST, DOW, and OBV, also indicate a bullish outlook for the stock.

Despite its fair valuation with a 2.2 Enterprise value to Capital Employed and trading at a discount compared to its historical valuations, Howard Hotels has seen a decline in profits by -101.7% over the past year, while still generating a return of 101.12%. The majority shareholders of the company are its promoters.

However, Howard Hotels has shown consistent returns over the last 3 years, outperforming the BSE 500 in each of the last 3 annual periods. While the recent downgrade may raise concerns for investors, it is important to consider the company's overall performance and potential for future growth.