Atour Lifestyle Holdings: Strong Financial Performance and Strategic Initiatives Drive Buy Rating and Raised Price Objective

Bank of America Securities analyst Ronald Leung has reiterated their bullish stance on ATAT stock, giving a Buy rating yesterday.

Ronald Leung has given his Buy rating due to a combination of factors including Atour Lifestyle Holdings’ strong financial performance and strategic initiatives. The company’s adjusted net income for the first quarter of 2025 exceeded expectations by 4%, driven by robust retail performance and improved margins. Additionally, Atour’s revenue growth guidance for fiscal year 2025 has been raised, with retail revenue expected to grow by 50% year-over-year, indicating confidence in future performance.
Moreover, the company has announced a three-year share repurchase program and a dividend plan, which are expected to provide a significant return to shareholders. The management’s strategy to balance occupancy and average daily rate, along with solid hotel signings, supports the company’s growth trajectory. These positive developments have led to an increase in the price objective to $37.80, reinforcing the Buy rating as Atour continues to capture market share.

In another report released yesterday, Macquarie also maintained a Buy rating on the stock with a $39.00 price target.