Barclays' new coverage of Apple Hospitality REIT (APLE) has put fresh attention on the hotel owner’s efficiency push, cost controls, and portfolio refresh at a time when many investors remain cautious on hotel REITs.

The latest share price of US$11.82 sits against a mixed performance record, with a 90 day share price return of 4.14% but a 1 year total shareholder return decline of 16.9%. This suggests momentum has been muted even as Barclays’ new coverage draws attention to its efficiency efforts.

If Barclays’ comments have you rethinking hotel exposure, it could be a good moment to widen the lens and check out fast growing stocks with high insider ownership as potential alternatives.

With APLE trading at US$11.82, sitting at a roughly 30% discount to one intrinsic value estimate and below some analyst targets, you have to ask: is this a mispriced hotel income play, or is the market already factoring in its future growth?

Most Popular Narrative: 9.1% Undervalued

Apple Hospitality REIT’s most followed narrative puts fair value at $13 per share, which sits above the last close of $11.82 and frames the current discount.

The analysts have a consensus price target of $13.6 for Apple Hospitality REIT based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $15.0, and the most bearish reporting a price target of just $12.0.

Want to see what is sitting underneath that $13 fair value and tight range of targets, including revenue, margins and the 2028 earnings multiple assumptions? The full narrative lays out those moving pieces in a simple earnings and valuation roadmap.

Result: Fair Value of $13 (UNDERVALUED)

However, there are still a few watchpoints here, including pressure from alternative lodging options and the risk that business travel demand remains weaker than analysts expect.

Build Your Own Apple Hospitality REIT Narrative

If you are not on board with this view or prefer to test the figures yourself, you can build a personalised narrative in just a few minutes with Do it your way.

A great starting point for your Apple Hospitality REIT research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.

Looking for more investment ideas?

If APLE has you thinking more broadly about where to put fresh capital to work, do not stop here. Widen your search before the next move passes you by.

• Tap into potential growth by scanning these 3530 penny stocks with strong financials that pair smaller market caps with financial strength, so you can focus on ideas with some fundamentals behind them.
• Position yourself early in new tech trends by checking out these 26 AI penny stocks that link artificial intelligence themes with the accessibility of lower share prices.
• Target value focused opportunities by reviewing these 871 undervalued stocks based on cash flows that flag companies where current prices sit below estimates based on their cash flows.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.