BX - Extended Stay cut to Neutral by Baird due to merger's 'fair valuation'

Baird analyst Michael J. Bellisario downgrades Extended Stay America ([[STAY]] +0.5%) to Neutral, reversing last week's upgrade, as he sees Blackstone ([[BX]] -0.7%)/Starwood Capital's pending acquisition of the REIT representing a fair valuation."We do not see a topping bid emerging; we expect the deal to be approved as is," Bellisaro writes in a note to clients.The deal makes sense, given its "relatively stable fundamental performance of the business through the pandemic, a robust cash flow profile, and an improving debt/financing market," he said.Further details on STAY's deal with Blackstone/Starwood from an 8-K filed late Monday: STAY agrees not to solicit or enter an acquisition agreement or provide non-public information to another suitor; however it may enter talks and provide non-public information to another party that makes an unsolicited written proposal.The Blackstone/Starwood agreement includes a $300M termination fee if the buyers end the agreement and a fee of up to $105M if

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Extended Stay cut to Neutral by Baird due to merger's 'fair valuation'