M Stanley Raises Forecast for CN Hotel Sector, Assigns Overweight Ratings to H World (HTHT.US) and Atour Lifestyle (ATAT.US)
Morgan Stanley's Updated Forecasts: Morgan Stanley has revised its forecasts for Chinese hotel and leisure companies, indicating a shift from a downturn to a recovery phase in the industry, with a preference for H World and Atour Lifestyle.
Revenue Recovery: The revenue per available room for Chinese hotels has ended a two-year decline, prompting Morgan Stanley to upgrade its outlook on the Hong Kong/Mainland China leisure and accommodation industry to Attractive.
Profitability Ratings: H World and Atour Lifestyle have been rated as Overweight due to their high profitability characteristics, with expectations of significant net profit growth by 2026 compared to the past three years.
Target Price Increases: Morgan Stanley has raised its target prices for H World from USD 47 to USD 65 and for Atour Lifestyle from USD 40 to USD 45, reflecting their positive outlook on these companies.
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