On January 9, 2026, Patrick Scholes of Truist Securities upgraded Choice Hotels International, Inc. (CHH) to a Buy rating, setting a price target of $126. Currently trading at approximately $108.18, this recommendation indicates a significant upside potential for investors, suggesting that CHH may present a compelling buying opportunity in the hospitality sector.
Recent Price Action
Over the past few trading sessions, CHH has demonstrated notable resilience, closing at $108.18—a 2.54% increase, equivalent to a change of $2.68. The stock’s recent performance reflects its stable nature, characterized by a beta of 0.783, indicating that it tends to be less volatile than the broader market. Over the past year, however, CHH has faced challenges, with its price trailing significantly from its 52-week high of $140.65 to a low of $28.73, making its current position appear attractive to potential investors. The trading volume recently totaled around 671,067 shares, slightly below its average of 687,970, but the stock has still been an active player in the market, showcasing investor interest amidst fluctuating conditions.
Historical Performance
Examining CHH’s historical performance reveals a mixed trajectory. In the past 30 days, the stock has risen 23.02%, taking on a more positive outlook compared to the quarterly performance of 4.06%. However, in stark contrast, the yearly performance is down by 25.53%, suggesting persistent challenges that the company may need to address. The weekly volatility has reached 5.65%, while monthly volatility stands at 3.52%, highlighting the stock’s susceptibility to short-term market fluctuations. With an average trading volume of 894,558 over the past 10 days compared to 675,550 for the past three months, it’s clear that investor interest is on the rebound.
Earnings Analysis
Regarding earnings, CHH’s latest data remains under wraps as the company is set to release its next results on November 5, 2025. The consensus estimate for earnings per share (EPS) stands at $2.19. This follows a previous report on August 6, 2025, when the actual EPS of $1.92 surpassed estimates of $1.90, resulting in a surprise factor of approximately 10.5%. This strong earnings surprise suggests that the company has the potential to outperform expectations, further solidifying its reputation among investors.
Analyst / Consensus View
The sentiment surrounding CHH has shifted positively with Truist Securities’ recent upgrade. Of 12 total ratings, three analysts recommend a Buy, five suggest holding, and four advise selling. The average price target now stands at $113.42, indicating a promising outlook. While the highest price target is set at $140, the lowest remains at $84, illustrating a varied level of confidence among analysts. The consensus reflects a cautiously optimistic view, with room for upward movement if the company can capitalize on recent trends.
Stock Grading or Fundamental View
The Stocks Telegraph Grade for Choice Hotels is currently at 45, indicating moderate performance relative to broader market expectations. This score summarizes the company’s financial health and overall investment profile, taking into account various analytical categories. While not outstanding, a score of 45 suggests that the company exhibits some positive fundamentals that warrant close attention from investors.
Conclusion
For investors seeking exposure to the hospitality sector, Choice Hotels International, Inc. offers an intriguing opportunity following its recent upgrade. With a rating of Buy and significant potential upside to its price target, CHH may appeal to those focused on long-term growth, especially as the company navigates post-pandemic recovery and market recalibrations. However, prospective investors should remain vigilant of the inherent risks associated with stock volatility and broader economic conditions that could influence performance. The upcoming earnings report on November 5 will also be crucial in determining CHH’s trajectory—an event worth monitoring closely.