Ronald Leung, an analyst from Bank of America Securities, reiterated the Buy rating on Atour Lifestyle Holdings. The associated price target is $38.30.
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Ronald Leung’s rating is based on Atour Lifestyle Holdings’ strong financial performance and strategic growth initiatives. The company reported a significant increase in its adjusted net income for the second quarter, surpassing expectations by 3% due to higher franchise revenue, likely driven by an efficient supply chain. Additionally, Atour’s revenue grew by 37% year-over-year, outperforming estimates by 4%, with retail revenue showing an impressive 80% year-over-year growth.
Management’s decision to slightly raise the full-year 2025 revenue guidance, with total revenue expected to grow by 30% year-over-year and retail revenue by 60%, further supports the Buy rating. The company’s strategic focus on expanding its hotel openings and maintaining quality, alongside the successful launch of new hotel concepts like SAVHE and Atour Light, indicates a promising outlook. Despite a higher tax rate anticipated in the future, the overall market share gain and effective execution justify the positive rating, with a price objective set at $38.30.
According to TipRanks, Leung is ranked #2584 out of 9952 analysts.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $40.00 price target.