NEW YORK (AP) -- Janney Capital Markets downgraded Wyndham on Wednesday, though it's not because of anything the hotel and resorts chain is doing wrong.
Company shares are up more than 14 percent this month, 26 percent this year and the stock hit a 52-week high Tuesday. That's just too fast for analyst Brian McGill to maintain a buy rating on the stock, he said.
"At this price, there is less than 4 percent upside to our fair value and we move to the sidelines after a fantastic two and a half years," McGill wrote in a note to investors.
The company wisely adjusted its business model several years ago to focus on free cash flow, McGill said, and it's been rewarded by investors.
Gill lowered his rating to "neutral," though he is sticking by his $66 price target for the stock.
A spokeswoman for Wyndham didn't immediately return an email seeking comment.
McGill expects solid growth in the lodging business, though he does see some challenges ahead in the vacation ownership and exchange and rental segments.
Shares of Wyndham Worldwide Corp., based in Parsippany, N.J., ended the day down 28 cents, to $$63.83 Tuesday.