Choice Hotels International (NYSE: CHH) shares slipped nearly 2% intra-day Monday after BofA Securities downgraded the stock to Underperform from Neutral and cut its price target to $110 from $160.

The firm said prolonged weakness in the lower-end lodging segment over the past two to three years had raised concerns about fundamentals. Analysts also flagged the company's weakest net unit growth among peers, slowing tailwinds from M&A and ancillary revenue, and diminished balance sheet flexibility.

BofA concluded that the risk-reward profile for Choice Hotels was no longer compelling, given these pressures.