BancBoston Robertson Stephens Lowers Rating on MT to a Market Performer
PR Newswire - August 02, 1999 09:53
SAN FRANCISCO, Aug. 2 /PRNewswire/ -- The following is being issued by BancBoston Robertson Stephens, a member of the National Association of Securities Dealers, CRD number 41271:
BancBoston Robertson Stephens managing director and senior real estate analyst Jay P. Leupp and real estate analyst Paul R. Penney today lowered their rating on Meditrust (NYSE: MT) from a Buy to a Market Performer. The company, headquartered in Needham, Mass., is a fully integrated real estate investment trust (REIT) that owns, operates and acquires health care and hotel properties nationwide.
"We are lowering our rating on Meditrust from a Buy to a Market Performer," said Leupp and Penney. "In addition, we are lowering our 1999 and 2000 earnings-per-share estimates by $0.23 and $0.41 to $2.04 and $2.08, respectively, to reflect reduced internal growth assumptions from La Quinta hotels, increased interest expense and non-core asset sale assumptions.
"The company last week reported second-quarter 1999 earnings-per-share of $0.60, $0.01 below our estimate of $0.61," said Leupp and Penney. "We attribute the $0.01 difference to lower-than-expected RevPAR growth, a loss of (0.6) percent versus our estimate of a 2.0 percent increase, in the company's La Quinta hotel division. Further, due to continued deterioration in the mid-priced and budget hotel sectors, we see no near-term earnings catalyst that is likely to drive Meditrust shares higher."
Clients interested in receiving more information should contact their salesperson at 415-781-9700.
BancBoston Robertson Stephens, the section 20 subsidiary of BankBoston (NYSE: BKB), is a leading international investment bank focused on growth companies in the technology, life sciences and healthcare, information and business services, retail and consumer products, real estate, media, telecommunications, broadcasting, and gaming and lodging sectors. The firm's 45 equity research analysts cover nearly 700 companies. Since its founding in 1978, BancBoston Robertson Stephens has raised over $52 billion in initial public offerings, follow-ons and convertible offerings. The firm has also assisted in over 400 mergers and acquisitions transactions valued at more than $77 billion. BancBoston Robertson Stephens began its high yield securities business in February 1997 and since that time has completed 69 transactions, including 15 lead transactions, raising more than $12.6 billion. BancBoston Robertson Stephens has offices in San Francisco, New York, Menlo Park, Boston, Chicago, London and Tel Aviv.
The following synopsis is qualified in its entirety by the more detailed information contained in the full research report, including the discussion of certain risks associated with an investment in this security contained in "Investment Risks."
The information contained herein is not a complete analysis of every material fact respecting any company, industry or security. Although opinions and estimates expressed herein reflect the current judgment of BancBoston Robertson Stephens, the information upon which such opinions and estimates are based is not necessarily updated on a regular basis; when it is, the date of the change in estimate will be noted. In addition, opinions and estimates are subject to change without notice. This Report contains forward-looking statements, which involve risks and uncertainties. Actual results may differ significantly from the results described in the forward-looking statements. Factors that might cause such a difference include, but are not limited to, those discussed in "Investment Risks." BancBoston Robertson Stephens from time to time performs corporate finance or other services for some companies described herein and may occasionally possess material, nonpublic information regarding such companies. This information is not used in the preparation of the opinions and estimates herein. While the information contained in this Report and the opinions contained herein are based on sources believed to be reliable, BancBoston Robertson Stephens has not independently verified the facts, assumptions and estimates contained in this Report. Accordingly, no representation or warranty, expressed or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information and opinions contained in this Report. BancBoston Robertson Stephens, its managing directors, its affiliates, and/or its employees may have an interest in the securities of the issue(s) described and may make purchases or sales while this report is in circulation. BancBoston Robertson Stephens International Ltd. is regulated by the Securities and Futures Authority in the United Kingdom. This publication is not meant for private customers. The securities discussed herein are not FDIC insured, are not deposits or other obligations or guarantees of BankBoston N.A., and are subject to investment risk, including possible loss of any principal amount invested.
SOURCE BancBoston Robertson Stephens
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