STAY - Extended Stay upgraded to Outperform at Baird as growth set to accelerate

Baird analyst Michael Bellisario upgrades Extended Stay America ([[STAY]] -1.5%) to Outperform on increased confidence that the hotel REIT's management will be able to implement operational changes and accelerate its growth profile.Says demand trends are continuing to improve, more stimulus should help STAY's lower-priced hotels, and on balance sheet development is winding down.Also, net unit growth should begin to speed up and potential asset sales are among upcoming positive catalysts.Maintains global hotel brands real estate sector at Market-Weight as valuations and sentiment already reflect that the recovery has arrived, Bellisario said.STAY shares outperform the S&P 500 during much of the past year as seen in chart below.SA contributor Michael A. Gayed also sees STAY growth picking up once things return to normal.

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Extended Stay upgraded to Outperform at Baird as growth set to accelerate