Analyst Fawne Jiang of Benchmark Co. maintained a Buy rating on H World Group, with a price target of $48.00.
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Fawne Jiang has given his Buy rating due to a combination of factors that highlight H World Group’s resilience and strategic positioning. The company’s ability to reaffirm its FY25 guidance, despite facing near-term RevPAR pressures and macroeconomic uncertainties, underscores the robustness of its asset-light managed and franchised model. This model not only supports sustainable margin trends but also enhances operating leverage through supply chain optimization and cost reduction.
Moreover, H World Group’s strategic focus on high-quality, asset-light growth and network expansion positions it well for continued success. The company’s emphasis on expanding its hotel network in key cities and lower-tier markets, along with its commitment to reducing leased and owned exposure, reflects a capital-efficient growth strategy. The positive trajectory in franchise monetization revenue and the ongoing expansion of direct sales further reinforce the potential for sustained margin improvement, making the stock an attractive buy.
Jiang covers the Consumer Cyclical sector, focusing on stocks such as JD, Sea, and H World Group. According to TipRanks, Jiang has an average return of 17.8% and a 57.76% success rate on recommended stocks.
In another report released yesterday, Bank of America Securities also maintained a Buy rating on the stock with a $45.00 price target.